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How should the eliminating entry handle unrealized profit in P's sales to S if S has written down the value of the inventory? A. Unrealized
How should the eliminating entry handle unrealized profit in P's sales to S if S has written down the value of the inventory?
A. Unrealized profit in ending inventory is S's selling price less P's cost.
B. S's value is irrelevant, so it should do it the same as it woujld if S had not written down the value of the inventory.
C. Unrealized profit in ending inventory is S's inventory valuation less P's cost.
D. Unrealized profit in ending inventory always is S's cost less P's cost.
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