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    Advanced Accounting Study Set 6
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    Exam 5: Consolidated Financial Statements - Intercompany Asset Transactions
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    During 2009,Edwards Co
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During 2009,Edwards Co

Question 13

Question 13

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During 2009,Edwards Co.sold inventory to its parent company,Forsyth Corp.Forsyth still owned all of the inventory at the end of 2009.Why must the gross profit on the sale be deferred when consolidated financial statements are prepared at the end of 2009?

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A sale of inventory by a subsidiary to i...

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