When a subsidiary sells inventory to a parent, the intra-entity profit is removed from the subsidiarys income

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When a subsidiary sells inventory to a parent, the intra-entity profit is removed from the subsidiary’s income and reduces the income allocation to the noncontrolling interest. Is the profit permanently eliminated from the noncontrolling interest, or is it merely shifted from one period to the next? Explain.

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Advanced Accounting

ISBN: 9781260247824

14th Edition

Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik

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