Explain what happens to the gross profit on the sale, Accounting Basics

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Explain what happens to the gross profit on the sale

During 2012, Edwards Co. sold inventory to its parent company, Forsyth Corp. Forsyth still owned all of the inventory at the end of 2012.Explain what happens to the gross profit on the sale when consolidated financial statements are prepared at the end of 2012. Whay is the gross profit treated this way?

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Accounting Basics: Explain what happens to the gross profit on the sale

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