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okay welcome back to advanced accounting to inter-company transactions this is a big week and we are going to be covering all of the remaining examinable topics which are inter-company transactions why did i say examinable well because there are as many quote inter-company transactions as there are transactions the thing that makes them intercompany is when they occur between a parent and a sub so lets think back to our much earlier visual of the water bottle when you have a company which controls another company it as if it is as if they are both arms of the same body lets take my body say i have a water bottle in my left hand and my left hands income statement is underperforming can my left hand sell my right hand the water bottle for ten dollars more than it purchased it for and call that profit to boost their financial position perhaps you might say thats okay well what about a hundred dollars more than it purchased it for a thousand a million hopefully at some point i have you
