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Analysis of intercompany profit eliminations

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Question -

1. What is the essential procedural difference between work paper eliminating entries for unrealized intercompany profit when the selling affiliate is a less than wholly owned subsidiary and such entries when the selling affiliate is a parent company or a wholly owned subsidiary?

2. Why is it important to distinguish between upstream and downstream sales in the analysis of intercompany profit eliminations?

50 words minimum per answers. Thank you.

Reference no: EM131824515

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