Logo
Home Study Material Contact Search
AI Chat FREE
  1. mathematics
  2. advance math
  3. several years ago brant, inc., sold $960,000 in bo

Several years ago Brant, Inc., sold $960,000 in bonds to the public. Annual cash interest of 9...

80.2K

Verified Solution

Question

Advance Math

Several years agoBrant, Inc., sold $960,000 in bonds to the public. Annual cashinterest of 9 percent ($86,400) was to be paid on this debt. Thebonds were issued at a discount to yield 12 percent. At thebeginning of 2016, Zack Corporation (a wholly owned subsidiary ofBrant) purchased $160,000 of these bonds on the open market for$181,000, a price based on an effective interest rate of 7 percent.The bond liability had a carrying amount on that date of $930,000.Assume Brant uses the equity method to account internally for itsinvestment in Zack.

  1. a. &b. What consolidation entry would be required for thesebonds on December 31, 2016 and December 31, 2018?

Answer & Explanation Solved by verified expert
4.5 Ratings (917 Votes)
    See Answer
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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Describe how to conduct an f-test to analyze a dataset (Steps are fine in this case)

Statistics
Q

A Cliff at point A Elevation At a point B on the ground the angle...

Geometry
Q

What interest will be earned if $7000 is invested for 4 years at 11% compounded...

Basic Math
Q

R is the region bounded by the functions f(x) = 5?(x-1) and g(x) = (5x/3)...

Calculus
Q

Consider the parabola given by the equation Find the following for this parabola y 4x...

Algebra
Q

A graphing calculator is recommended Use a graphing device to find all solutions of the...

Algebra
Q

7 Love Company's accounting records show an after-closing balance of $20,700 in its Retained...

Accounting
Q

Acme Companys current ratio is less than 1.0. Which of the following transactions will increase...

Accounting
Q

Answer the following requirements: Create an accounting journal template in an Excel sheet. (Draw...

Accounting
Q

Their financial analyst has estimated that the cost for this route will be as follows:...

Accounting
Q

The Rose Williams Company tiene una relacin C/M del 36%. Las ventas de equilibrio son...

Accounting
Q

A project has an initial cost of $40,000, expected net cash inflows of $9,000 per...

Finance