On January 1, 20X1, a Parent Loaned $30,000 to Its

question 34

Short Answer

On January 1, 20X1, a parent loaned $30,000 to its 100%-owned subsidiary on a 5-year, 8% note. The note requires a principal payment at the end of each year of $6,000 plus payment of interest accrued to date. The following accounts require adjustment in the consolidation process:

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Definitions:

Subjective Measure

An assessment method based on personal opinions, interpretations, or feelings rather than objective criteria or metrics.

Performance

The execution of an action or task in consideration of its efficiency, effectiveness, and quality.

Net Profits

The amount of money left after all expenses, taxes, and costs have been subtracted from total revenue.

Focal Leader

A primary leader who is the central point of guidance and decision-making within a group or organization.