Elimination of Intercompnay Sales of Depreciable Assets | Advanced Accounting CPA Exam FAR

Gains or losses on intercompany sales of depreciable assets are recognized either when the asset is sold to outsiders, or gradually over time as it is depreciated.
Explain the term “realized through usage.”
Accumulated depreciation should be presented in the consolidated balance sheet based on the cost of the asset to the affiliated group, and depreciation expense should be presented in the consolidated income statement also based on the cost to the affiliated group.

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