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Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik
Edition 10ISBN: 978-1260575910Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik
Edition 10ISBN: 978-1260575910 Exercise 54
Darges owns 51 percent of the voting stock of Walrus, Inc.The parent's interest was acquired several years ago on the date that the subsidiary was formed.Consequently, no goodwill or other allocation was recorded in connection with the acquisition.
On January 1, 2008, Walrus sold $1,000,000 in 10-year bonds to the public at 105.The bonds had a cash interest rate of 9 percent payable every December 31.Darges acquired 40 percent of these bonds on January 1, 2010.What consolidation entry would be recorded in connection with these intra-entity bonds for 96 percent of face value Both companies utilize the straight-line method of amortization.
a.December 31, 2010
b.December 31, 2011
c.December 31, 2012
On January 1, 2008, Walrus sold $1,000,000 in 10-year bonds to the public at 105.The bonds had a cash interest rate of 9 percent payable every December 31.Darges acquired 40 percent of these bonds on January 1, 2010.What consolidation entry would be recorded in connection with these intra-entity bonds for 96 percent of face value Both companies utilize the straight-line method of amortization.
a.December 31, 2010
b.December 31, 2011
c.December 31, 2012
Explanation
Verified
Verified
a.
Book Value of Bonds Payable, January ...
Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik
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