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Liu Company sells inventory to its subsidiary, Santana Company, at a profit during 2016. If Liu uses the equity method to account for its equity
Liu Company sells inventory to its subsidiary, Santana Company, at a profit during 2016. If Liu uses the equity method to account for its equity investment in Santana, which of the following would be credited in the consolidated worksheet for 2017? Select one:
A. Inventory
B. Sales
C. Equity investment
D. Cost of goods sold
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