If a parent company and its 100% owned subsidiary have accounts receivable from external sources in the amounts of $35,000 and $10,000,respectively,the consolidated balance sheet for the parent and its subsidiary will show:

Question

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When preparing consolidated financial statements, the accounts of the parent and its subsidiary are combined into a single set of financial statements. Therefore, the consolidated balance sheet will show one accounts receivable balance, which is the sum of the parent's and subsidiary's accounts receivable, totaling $45,000.

If a Parent Company and Its 100% Owned Subsidiary Have