SUB is an 80% owned subsidiary of PAR. SUB issued $100,000 of 8%, 10-year bonds for $95,000 on 1/1/2011. Annual interest is paid on 12/31/. PAR purchased the bonds on 1/1/2017, for $102,000. Both...

SUB is an 80% owned subsidiary of PAR. SUB issued $100,000 of 8%, 10-year bonds for $95,000 on 1/1/2011. Annual interest is paid on 12/31/. PAR purchased the bonds on 1/1/2017, for $102,000. Both companies use the straight-line method to amortize the premium/discount on the bonds.

1) How much gain or loss on retirement should be reported in 2017 consolidated statements?

Select one:

a. 2,000 loss

b. 0

c. 4,000 loss

d. 2,000 gain

The elimination and adjustment process for 2017 consolidated statements include:

Select one:

a. Credit Investment in Subsidiary Bond 102,000

b. Credit Interest Expense 8,000

c. Debit Interest Revenue 7,500

d. Credit Discount 500

Clear my choice

Jun 03, 2022

SOLUTION.PDF

SUB is an 80% owned subsidiary of PAR. SUB issued $100,000 of 8%, 10-year bonds for $95,000 on 1/1/2011. Annual interest is paid on 12/31/. PAR purchased the bonds on 1/1/2017, for $102,000. Both...

Get Answer To This Question

Related Questions & Answers

Submit New Assignment