ELIMINATION OF UNREALIZED GAINS OR LOSSES ON INTERCOMPANY SALES OF PROPERTY AND EQUIPMENT
Understand the financial reporting objectives in accounting for intercompany sales of nondepreciable assets on the consolidated financial statements.
State the additional financial reporting objectives in accounting for intercompany sales of depreciable assets on the consolidated financial statements.
Explain when gains or losses on intercompany sales of depreciable assets should be recognized on a consolidated basis.
Explain the term “realized through usage.”
Describe the differences between upstream and downstream sales in determining consolidated net income and the controlling and noncontrolling interests in consolidated income.
Compare the eliminating entries when the selling ...