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How much interest expense is recorded on subsidiary books

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Reference no: EM133003979

On January 1, 2010, parent lends 70% owned subsidiary $5,000,000 at 6% annual interest for two years. Subsidiary pays the accrued interest at the end of each year. Answer the following:

Problem a. How much interest income is recorded on the Parent's books in 2010

Problem b. How much interest expense is recorded on the subsidiary's books in 2010

Problem C. What journal entry did the parent record on January 1, 2010

Reference no: EM133003979

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