Assume that an investor has two associates, which are both 20 per cent owned During the year,
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Assume that an investor has two associates, which are both 20 per cent owned
During the year, one associate sells some inventory to the other associate at a profit of $50 000. At the end of the year, this inventory is still on hand with the associate that has bought the inventory. In determining the investor’s share of the associates’ profits, what adjustments would be necessary as a result of this transaction?
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