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Peanut Corporation Acquired 80 Percent of Snoopy Company's Voting Shares

Question 37

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Peanut Corporation acquired 80 percent of Snoopy Company's voting shares on January 1,20X8,at underlying book value.On that date,it also purchased $500,000 par value 8 percent Snoopy bonds,which had been issued on January 1,20X5,with a 12-year maturity.During preparation of the consolidated financial statements for December 31,20X8,the following consolidating entry was made in the worksheet:
Peanut Corporation acquired 80 percent of Snoopy Company's voting shares on January 1,20X8,at underlying book value.On that date,it also purchased $500,000 par value 8 percent Snoopy bonds,which had been issued on January 1,20X5,with a 12-year maturity.During preparation of the consolidated financial statements for December 31,20X8,the following consolidating entry was made in the worksheet: -Based on the information given above,what was the carrying amount of the bonds on Snoopy's books on the date of purchase? A) $533,750 B) $516,875 C) $545,000 D) $550,625
-Based on the information given above,what was the carrying amount of the bonds on Snoopy's books on the date of purchase?


A) $533,750
B) $516,875
C) $545,000
D) $550,625

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