When subsidiary is partially owned $($less than $100\%)$ by parent, which of the following statement is NOT true about the consolidation procedure with intercompany merchandise sales?

Which company is the intercompany seller $($vs$.$ buyer$)$ does not affect the income distribution.

Need to eliminate related intercompany receivable$/$payable$.$

Need to eliminate intercompany sales.

Profit is realized when the goods are sold to an outside party.