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The textbook points out that Leases between the Parent and the Subsidiary are the most common type of lease transactions between companies. My question for

The textbook points out that Leases between the Parent and the Subsidiary are the most common type of lease transactions between companies.

My question for you is, what are some of the main incentives of these types of transactions. If the companies are leasing on the same terms as if it were to non-affiliated companies, why do we need to eliminate the transaction?

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