I. Intercompany transfer of inventory at cost need not be eliminated in consolidation. II. Downstream intercompany transfer of inventory to a 100%-owned subsidiary need not be eliminated in consolidation. Both statements are false. Both statements are true. Statement I is true; Statement II is false. Statement I is false; Statement II is true.
I. Intercompany transfer of inventory at cost need not be eliminated in consolidation. II. Downstream intercompany transfer of inventory to a 100%-owned subsidiary need not be eliminated in consolidation. Both statements are false. Both statements are true. Statement I is true; Statement II is false. Statement I is false; Statement II is true.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I. Intercompany transfer of inventory at cost need not be eliminated in consolidation.
II. Downstream intercompany transfer of inventory to a 100%-owned subsidiary need not be eliminated in consolidation.
Both statements are false.
Both statements are true.
Statement I is true; Statement II is false.
Statement I is false; Statement II is true.
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