Effect of the intra-entity sale

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Perez, Inc., applies the equity method for its 25 percent investment in Senior, Inc. During 2011, Perez sold goods with a 40 percent gross profit to Senior. Senior sold all of these goods in 2011. How should Perez report the effect of the intra-entity sale on its 2011 income statement?

Reference no: EM13124706

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