Suppose P transfers/sells a plant to S, in income statement are we to reduce the revenue and the cost of sale by the transfer price/selling rice amount or just add the profit on sale to the cost of sales?
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Pups on t/f of plant - Cons. Income statement
Sale proceeds of plant do not go into revenue nor does the cost go into cost of sales
The only exception is where the company is a manufacturer / retailer of plant items
Does that answer your question?
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