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Business, 26.02.2020 23:51 bellad0124outlookcom

1. A subsidiary has a $30,000 loan obtained from its parent in a previous year. The parent charges interest on the loan at a 3% annual rate, and interest is paid on June 1 and December 1 of each year. How does this intercompany affect the parent's equity in income for the year, assuming the parent uses the complete equity method to report its investment on its own books? A. $900 is added B. No effect C. $900 is deducted D. $75 is deducted

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