An entity earns income by making sales to outside customers. It cannot earn income by dealing with

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An entity earns income by making sales to outside customers. It cannot earn income by dealing with itself. Corporations in the consolidated family may buy from and sell to one another. Transactions between members of the family [do / do not] earn income for the consolidated entity. The effect of these intrafamily transactions , therefore, must be eliminated from the consolidated statements.

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Essentials Of Accounting

ISBN: 9780273771463

11th International Edition

Authors: Leslie K. Breitner

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