Intercompany loans, operating leases of property, and rendering of services do not include an element of intercompany profit gain or loss for the consolidated entity because:
A) The affiliated companies do not profit at each other's expense
B) The revenue of one affiliate exactly offsets the expense of the other affiliate
C) The transactions are not with outsiders
D) The intercompany amounts are eliminated in the working paper for consolidated financial statements
Correct Answer:
Verified
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