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give a true or false conclusion, include the reasons why you choose that conclusion 1) The consolidation adjustment to eliminate the parents investment and the

give a true or false conclusion, include the reasons why you choose that conclusion

1) The consolidation adjustment to eliminate the parents investment and the subsidiarys equity at the date of acquisition is passed once in the first year of acquisition and not subsequently.

2) An adjustment needs to be made to the unrealized profit included in the inventory balance to avoid the understatement of group profits and the overstatement of group assets.

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