Guaranteed debt of unconsolidated subsidiaries should generally be ignored when analyzing the long-term solvency of a parent company, as subsidiaries are separate legal entities.

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The guaranteed debt of unconsolidated subsidiaries should not be ignored when analyzing the long-term solvency of a parent company because the parent company may be responsible for the debt if the subsidiary is unable to pay.

Guaranteed Debt of Unconsolidated Subsidiaries Should Generally Be Ignored When