During 2013, Edwards Co. sold inventory to its parent company, Forsyth Corp. Forsyth still owned all of

Question:

During 2013, Edwards Co. sold inventory to its parent company, Forsyth Corp. Forsyth still owned all of the inventory at the end of 2013. Explain what happens to the gross profit on the sale when consolidated are prepared at the end of 2013. Why is the gross profit treated this way?
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...