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What are three common real-world applications of a parallelism tolerance on a drawing?
Goodwill
An intangible asset that arises when a business is acquired for more than the fair value of its identifiable net assets; reflects the value of the brand, customer relationships, and reputation.
Parent-Company Extension Method
This method involves the accounting for investments in subsidiaries from the perspective of the parent company, focusing on the extension of the parent company's financial statements to include its interest in subsidiaries.
Entity Method
An approach in accounting that records the investments of a parent company in a subsidiary as distinct separate entities.
Consolidated Net Income
The total net income of a parent company and its subsidiaries after eliminating inter-company transactions.
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