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Chapter 9: Indirect and Mutual Holdings: Advanced Accounting
Chapter 9: Indirect and Mutual Holdings: Advanced Accounting
Holdings
by Jeanne M. David, Ph.D., Univ. of Detroit Mercy
to accompany
Advanced Accounting, 10th edition
by Floyd A. Beams, Robin P. Clement,
Joseph H. Anthony, and Suzanne Lowensohn
Parent Parent
Pet Sal Ty
Intercompany profit
Separate transactions:70
income 35 20
– Downstream:
Dividends Pet sold Sal land
40 with
20a gain
10 of $10. This will be
fully attributed to Pet.
– Upstream: Sal sold $15 inventory to Pet, and Pet holds ending
inventory with unrealized profit of $5. This will be allocated
between Pet and NCI.
Parent Parent