When intercompany sales are eliminated during consolidation, why is cost of sales reduced by the amount of

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When intercompany sales are eliminated during consolidation, why is cost of sales reduced by the amount of intercompany sales?

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Advanced Financial Accounting

ISBN: 978-0137030385

6th edition

Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay

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Question Posted: Mar 13, 2015 07:48 AM

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When intercompany sales are eliminated during consolidation, why is cost of sales reduced by the amount of

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The sales price to the selling company is equal to the purch...View the full answer

Advanced Financial Accounting

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