The Sub's BV of the LT Liab is 150 (CR) - we do not have any info as far as what they are doing with that regarding amortization of premium or discount. So we just cannot look at it the same way as we did the equipment.
The Sub's FV of the LT Liab is 120 (CR) - so effectively, there is a discount of 30. So what we need to see is the amortization of that discount (increase interest expense) over the next 4 years, so that is the increased expense (DR) of 7.5.
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