Multiple Choice
Consolidated financial statements are being prepared for Behemoth Corporation and its two wholly-owned subsidiaries that have intercompany loans of $50,000 and intercompany profits of $100,000.How much of these intercompany loans and profits should be eliminated?
A) intercompany loans − $0;intercompany profits − $0
B) intercompany loans − $50,000;intercompany profits − $0
C) intercompany loans − $50,000;intercompany profits − $100,000
D) intercompany loans − $0;intercompany profits − $100,000
Correct Answer:
Verified
Correct Answer:
Verified
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