Which statement is true regarding intercompany sales of merchandise, when the subsidiary has a noncontrolling...
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Accounting
Which statement is true regarding intercompany sales of merchandise, when the subsidiary has a noncontrolling interest?
A. If the parent sells merchandise to the subsidiary, the total gross margin on the sale must be eliminated in the consolidation working paper. B. If the subsidiary sells merchandise to the parent, the total gross margin on the sale must be eliminated in the consolidation working paper. C. If the subsidiary sells merchandise to the parent, the noncontrolling interest must be increased by its share of realized profits in the parent's beginning inventory. D. If the parent sells merchandise to the subsidiary, the noncontrolling interest must be reduced by its share of unrealized profits remaining in the subsidiary's ending inventory.
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