Solved

Spice Company Issued $200,000 of 10 Percent First Mortgage Bonds

Question 39

Multiple Choice

Spice Company issued $200,000 of 10 percent first mortgage bonds on January 1,20X4,at 105.The bonds mature in 10 years and pay interest semiannually on January 1 and July 1.Pumpkin Corporation purchased $140,000 of Spice's bonds from the original purchaser on December 31,20X8,for $125,000.Pumpkin owns 75 percent of Spice's voting common stock.
-Based on the information given above,what amount of constructive gain will be allocated to noncontrolling interest in 20X8 consolidated financial statements?


A) $4,925
B) $5,550
C) $5,625
D) $4,625

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

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

Q35: Pancake Corporation owns 85 percent of Syrup

Q36: Saturn Corporation issued $300,000 par value 10-year

Q37: Peanut Corporation acquired 80 percent of Snoopy

Q37: At the end of the year,a parent

Q38: Paper Corporation holds 80 percent of the

Q40: When one company purchases the debt of