Multiple Choice
Company P owns an 90% interest in Company S. Company S has outstanding $100,000 of 10% bonds that were sold at face value and have 6 years to maturity as of the balance sheet date. Company P owns $70,000 of the bonds and has a remaining unamortized book value of $66,000. Company S bonds will be presented on the consolidated balance sheet as
A) bonds payable, $30,000.
B) bonds payable, $34,000.
C) bonds payable, $100,000.
D) bonds payable will not appear.
Correct Answer:
Verified
Correct Answer:
Verified
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