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What is the amount of adjustment required

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Problem - Parent Ltd owns all the share capital of Subsidiary Ltd. On 1 January 2018, Subsidiary Ltd borrows $530 000 from Parent Ltd with an interest rate of 12% p.a.. payable on 31 December each year. The tax rate is 30%. What is the amount of adjustment required for the consolidated 'interest expense' when preparing the consolidated ?nancial statements at 30 June 2018?

Reference no: EM132944230

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