12 for 0467 AICPA.071026FAR ? 4% 199. For consolidated purposes, what effect will the intercompany sale of a fixed asset at a profit or at a loss have on depreciation expense recognized by the buying affiliate? -40 At a Profit A. Overstate B Overstate C. Understate D. Understate At a Loss Overstate Understate Overstate Understate Intercompany (IC) Bond Transactions