The amount of intercompany profit eliminated is the same under total elimination and partial elimination in the case of:
A) upstream sales where the selling affiliate is a less than wholly owned subsidiary.
B) all downstream sales.
C) horizontal sales where the selling affiliate is a wholly owned subsidiary.
D) all downstream sales and horizontal sales where the selling affiliate is a wholly owned subsidiary.

Question

Quizplus · Accepted Answer

In downstream sales and horizontal sales where the selling affiliate is a wholly owned subsidiary, the parent company controls the entire profit, so the amount of intercompany profit eliminated is the same under both total and partial elimination.

The Amount of Intercompany Profit Eliminated Is the Same Under