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

[@alicezhang2292]

Farhat you are my life saver!

[@AccountingLectures]

Thank you Alice and please visit the website for more farhatlectures.com/

[@ermig319]

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

[@AccountingLectures]

The relationship between beginning inventory and COGS is positive or correlated. You are very welcome! Please take a look at my website for more resources: www.farhatlectures.com

[@antonmursid3505]

Antonmursid🙏🙏🙏🙏🙏✌👌💝🇮🇩🇮🇩🇮🇩🇮🇩🇮🇩✌👌💝

[@neatlymessed6341]

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?

[@antonmursid3505]

Antonmursid

[@kaysmith9722]

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

[@alenarminian7914]

he meant to divide 30k/80k

[@AccountingLectures]

Yes. 30/80

[@AccountingLectures]

It is an error. 30/80

[@adamsstreams1334]

This is the most important comment and thank you @AccountingLectures for replying

[@dkay2671]

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

[@alicezhang2292]

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?)

[@utubeistehsux]

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