Where an Investor Sells Inventories to an Associate in a Prior

question 4

Multiple Choice

Where an investor sells inventories to an associate in a prior year and the inventories are sold by the associate during the current year the investment in associate account is:

• A) unaffected.
• B) decreased by the investor's share of the realised profit.
• C) increased by the investor's share of the realised profit.
• D) increased by the full amount of the realised profit.

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Definitions:

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