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Is the following statement true? An elimination entry is required in preparing consolidated statements subsequent to the combination if an affiliate still holds inventory acquired

Is the following statement true? An elimination entry is required in preparing consolidated statements subsequent to the combination if an affiliate still holds inventory acquired from the parent prior to the business combination as the result of an arm's-length bargaining.

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yes, if the transaction was arms-length

no, unless the transaction was external

no, if the transaction was arms-length

none of the above

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