Multiple Choice
Sun Company is a 100%-owned subsidiary of Peter Company.On January 1, 2016, Sun Company has $500,000 of 8% face rate bonds outstanding, with an unamortized discount of $5,000 that is being amortized over a 5 year remaining life to maturity.On that date, Peter Company purchased the bonds for $497,000.The adjustment to the consolidated income of the two companies needed in the consolidation process for 2017 (the following year) is ____.
A) $2,800 increase
B) $400 decrease
C) $400 increase
D) $2,800 decrease
Correct Answer:
Verified
Correct Answer:
Verified
Q2: The Park Company owns 80% of the
Q3: Intercompany debt that must be eliminated from
Q4: On January 1, 2019, Parent Company
Q5: Park owns an 80% interest in the
Q6: In the year when one member of
Q8: Company S is a 100%-owned subsidiary of
Q9: Soap Company issued $200,000 of 8%, 5-year
Q10: Under a sales-type lease between affiliated companies,
Q11: On January 1, 2019, Parent Company purchased
Q12: Powell Company owns an 80% interest in