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Why is it important to distinguish between upstream and

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1. What is the essential procedural difference between work paper eliminating entries for unrealized intercompany profit when the selling affiliate is a less than wholly owned subsidiary and such entries when the selling affiliate is a parent company or a wholly owned subsidiary?

2. Why is it important to distinguish between upstream and downstream sales in the analysis of intercompany profit eliminations?

50 words minimum per answers. Thank you.

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