Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. parent owns 100% of sub. on the open market parent

Parent owns 100% of Sub. On the open market parent buy all bonds of the...

50.1K

Verified Solution

Question

Accounting

Parent owns 100% of Sub. On the open market parent buy all bonds of the Sub for $840,000 on January 1, 2021. The par value of these bonds on ledger for Sub is $750,000. Interest is paid annually at 7%. On the books of the Sub there is an unamortized discount of $40,000. The fiscal year end is December 31. The bonds mature in six years. What is the amount of interest expense that needs to be eliminated on the consolidated income statement for 2021?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

40 Is a Factor 5 DRAG AND DROP ITENS 3 10 25 Is Not a...

Basic Math
Q

Critical Sales Forecast Why is the sales forecast so important in short-term financial planning? How does it affect...

Finance
Q

The formate ion, (CHO2-), is related to the acetate ion and forms ionic salts with many...

Chemistry
Q

Two chemicals A and B are combined to form a chemical C. The rate of the...

Advance Math
Q

The radius of circle the period of revolution initial position and sense of revolution are...

Physics
Q

Task 1 Modelling a real world situation You have been asked to sell tickets to...

Basic Math
Q

7 10 points Let the demand and supply function for a commodity be Qa D...

Calculus
Q

Given f x 5 x 6 4 classify each statement about as true or false...

Calculus
Q

Find the distance between the pair of points If necessary express answers in simplified radical...

Calculus
Q

Use half angle formulas to fill in the blanks in the identity below sin 2x...

Calculus
Q

How Social Media Can Cost Someone Their Job?

Accounting
Q

4. 0.0720 . You want your portfolio beta to be 1.30. Currently, your portfolio consists...

Accounting