Intercompany Sales Elimination Entries With and Without Intercompany Profit" Please respond to the following:
• It is commonly known that, within a consolidated entity, one company can either sell merchandise with a profit embedded or depreciable or sell non-depreciable property with a gain embedded. Determine the financial impact, both positive and negative, of excluding such sales completely or of merely excluding the profit or gain embedded within the income of the sales. Next, suggest the financial reporting objectives of elimination entries, and give your opinion of whether the resulting financial statements would be misleading without the suggested elimination entries