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  2. Topic
    Business
  3. Study Set
    Advanced Accounting Study Set 6
  4. Exam
    Exam 6: Variable Interest Entities, intercompany Debt, consolidated Statement of Cash Flows, and Other Issues
  5. Question
    Parent Corporation Loaned Money to Its Subsidiary on a Five-Year
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Parent Corporation Loaned Money to Its Subsidiary on a Five-Year

Question 2

Question 2

Essay

Parent Corporation loaned money to its subsidiary on a five-year note at the market interest rate.How would the note be accounted for in the consolidation process?

Correct Answer:

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