Multiple Choice
Pancake Corporation owns 85 percent of Syrup Corporation's voting shares.On January 1,20X8,Pancake Corporation sold $200,000 par value 8 percent bonds to Syrup for $245,000.The bonds mature in 10 years and pay interest semiannually on January 1 and July 1.
-Based on the information given above,in the preparation of the 20X8 consolidated financial statements,interest income will be:
A) debited for $11,500 in the consolidating entries.
B) credited for $11,500 in the consolidating entries.
C) debited for $16,000 in the consolidating entries.
D) credited for $16,000 in the consolidating entries.
Correct Answer:
Verified
Correct Answer:
Verified
Q28: Which of the following statements is (are)correct?<br>I.The
Q31: On January 1,20X7,Passport Company acquired 60 percent
Q33: Saturn Corporation issued $300,000 par value 10-year
Q34: Paper Corporation holds 80 percent of the
Q36: Saturn Corporation issued $300,000 par value 10-year
Q37: At the end of the year,a parent
Q37: Peanut Corporation acquired 80 percent of Snoopy
Q38: Paper Corporation holds 80 percent of the
Q39: Spice Company issued $200,000 of 10 percent
Q40: When one company purchases the debt of