Inter-company Inventory elimination Entries. Advanced Accounting | CPA Exam 

Farhat you are my life saver!

50,000/80,000 is .625 this is the gross profit, not .375.

Hi Farhat, thank you for this informational video..I have a scenario which could use your help. So if there is a 50% ownership in B ltd and 20% ownership in C ltd by A Ltd..and B and C have inter company transactions. What happens at A ltd(parent level) will the transactions be eliminated completely or partly or what will happen?

does cost of good sold and begging inventory have direct relationship b/c if we have high beginning inventory means we have to purchase low inventory that will lower our cost of good sold so there will be inverse relation b/n them

What if 1 company sells a service to another company within the group. They will never give the item/service to a third party.

If the ending inventory is already adjusted through the elimination entry, then why in the next year still have to reduce COGS (reducing inventory again?)

Please clarify if the elimination transactions will have any tax effect for income tax and deferred tax