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Unite Ltd provided a loan of $1,000,000 to its subsidiary Inspire Ltd. Interest of $100,000...

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Accounting

Unite Ltd provided a loan of $1,000,000 to its subsidiary Inspire Ltd. Interest of $100,000 was charged during the year ended 30 June 2020. On consolidation, which of the following elimination entries is needed at 30 June 2020 in relation to the interest charged?

a.

Dr Interest expense $100 000

Cr Interest revenue $100 000

b.

Dr Interest expense $100 000

Cr Cash $100 000

c. No elimination is needed

d. Dr Interest revenue $100 000

Cr Interest expense $100 000

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