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Topic: Double Counting - Related Entity - Help! (

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gesha007
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Joined: 04 May 2012
Location: United States
Online Status: Offline
Posts: 1

Posted: 04 May 2012 at 17:20 \| IP Logged

Hi All,

I have a riddle with inter-company / intergroup expenses
with a new client which I can not wrap my head around:

The Scenario consists of 3 Entities which are LLC and
file form 1065( A LLC,B LLC and C LLC). A LLC Owns 92%
of B LLC and C LLC owns the remaining 8%. A LLC also
owns 49% of C LLC. Essentially, A LLC owns effectively
another 4% of B LLC via its 49% ownership in C LLC.

For example sakes assume that A LLC contributes $1000
into LLC B. LLC B then expenses the funds to LLC C. LLC
C picks up the funds as income and then finally expenses
the funds outside the group.

Upon running this model I noticed a double counting /
intercompany issue which needs to be adjusted. I am not
sure how much and what the entry would look like or on
whose books.

I have a model in excell. Please PM me so I could send
it onto you.

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