One consolidated group member lends money to another member of its group. Both corporations use the accrual method of accounting. Explain how the lending group member reports its interest income and how the borrowing group member reports its interest expense for consolidated tax return purposes. Discuss how this treatment compares to the consolidated financial accounting treatment of the transaction.

Popeye produces 20 cans of spinach in 8 hours. wimpy produces 15 hamburgers in 10 hours. if each hamburger trades for 1.5 cans of spinach, then: a.wimpy’s production and productivity are greater than popeye’s. b.popeye’s production is greater than wimpy’s, but his productivity is less. c.wimpy’s production is greater than popeye’s, but his productivity is less. d.popeye’s production and productivity are greater than wimpy’s.