1. How important is inter-company activity on decisions to form business combinations? We see inter-company transfers quite often between companies involved in a business combination. Why do you feel that this happens so frequently? Is this ever a concern to the investors, controlling and non-controlling?
2. Why do the intercompany transactions occur so frequently? Why do companies mark-up the price of intercompany inventory transfers? Wouldn't it be a lot simpler to transfer the inventory at cost and wait until the inventory is sold to an outside party to record any gain? This way we could at least eliminate the need to defer unrealized gains in ending inventory.

Please use your own words, and elaborate. Thank you. The questions are complete.