Business, 18.02.2020 20:12 tdahna0403
Assume that a Parent Company owns 100 percent of its Subsidiary. Each of the following independent scenarios describes an intercompany bond transaction between the Parent and the Subsidiary. For each independent case, determine the amount of gain or loss on constructive retirement of the bond reported in the consolidated income statement for the year ended December 31, 2019. Assume straight-line amortization.
a. On June 30, 2019, P issues directly to S bonds that have a par value of $150,000. S paid $156,000 for the bonds. The term of the bonds is 10 years and they have an 8 percent stated interest rate. Interest is paid annually on December 31.
b. On January 1, 2015, P issues to an unaffiliated company bonds that have a par value of $150,000. The unaffiliated company paid par value for the bonds. On December 31, 2019, S paid $105,000 for 70 percent of the outstanding bonds. The bond term is 10 years and they have an 8 percent stated interest rate. Interest is paid annually on December 31.
c. On January 1, 2015, P issues to an unaffiliated company bonds that have a par value of $150,000. The unaffiliated company paid 103 percent of par value for the bonds. Five years later, S paid $142,500 for all of the outstanding bonds. The bond term is 10 years and they have an 8 percent stated interest rate. Interest is paid annually on December 31.
d. On January 1, 2015, S issues to an unaffiliated company bonds that have a par value of $150,000. The unaffiliated company paid 96 percent of par value for the bonds. Five years later, P paid $108,150 for 70 percent of the outstanding bonds. The bond term is 10 years and they have an 8 percent stated interest rate. Interest is paid annually on December 31.
Answers: 2
Business, 22.06.2019 11:10, addsd
Sam and diane are completing their federal income taxes for the year and have identified the amounts listed here. how much can they rightfully deduct? • agi: $80,000 • medical and dental expenses: $9,000 • state income taxes: $3,500 • mortgage interest: $9,500 • charitable contributions: $1,000.
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Business, 22.06.2019 12:30, deedee363
In the 1970s, kmart used blue light specials to encourage customers to flock to a particular department having a temporary sale. a spinning blue light activated for approximately 30 seconds, and then an in-store announcement informed shoppers of the special savings in the specific department. over time, loyal kmart shoppers learned to flock to the department with the spinning blue light before any announcement of special savings occurred. if kmart was employing classical conditioning techniques, what role did the spinning blue light play?
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Business, 22.06.2019 21:30, hiji0206
Providing a great shopping experience to customers is one of the important objectives of purple fashions inc., a clothing store. to achieve this objective, the company has a team of committed customer service professionals whose job is to ensure that customers get exactly what they want. this scenario illustrates that purple fashions is trying to achieve
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Assume that a Parent Company owns 100 percent of its Subsidiary. Each of the following independent s...
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