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Katt Ltd. sold an asset to its parent company at a loss of $10,000. There was no evidence of any impairment of the asset when

  1. Katt Ltd. sold an asset to its parent company at a loss of $10,000. There was no evidence of any impairment of the asset when it was sold. The parent company owns 75% of Katt Ltd. How should the loss be treated on consolidation?

  1. The loss should be eliminated.
  1. It should be allocated between the parent company and the NCI.
  1. The full amount of the loss should be adjusted through opening retained earnings.
  1. The full amount of the loss should be adjusted through the SCI.

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