2. Apple owns 80% of Pear. Apple had a bond payable outstanding on January 1, 2010 with a book of $212,000. Pear purchases the bond in the open market for $199,000. How much is the cain or loss on retirement of the bond (show your calculation). , sme facts as #2 with Pear reporting interest income of $22,000 and Apple reporting interest expense of $21,000. How much is consolidated income in 2010.
2. Apple owns 80% of Pear. Apple had a bond payable outstanding on January 1, 2010 with a book of $212,000. Pear purchases the bond in the open market for $199,000. How much is the cain or loss on retirement of the bond (show your calculation). , sme facts as #2 with Pear reporting interest income of $22,000 and Apple reporting interest expense of $21,000. How much is consolidated income in 2010.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:**Text Transcription:**
2. Apple owns 80% of Pear. Apple had a bond payable outstanding on January 1, 2010 with a book value of $212,000. Pear purchases the bond in the open market for $199,000. How much is the gain or loss on retirement of the bond (show your calculation).
3. Same facts as #2 with Pear reporting interest income of $22,000 and Apple reporting interest expense of $21,000. How much is consolidated income in 2010.
**Explanation:**
This text describes a financial scenario where Apple, which owns 80% of Pear, has a bond that Pear buys from the open market. The situation involves calculating the gain or loss from the bond's retirement and determining the consolidated income based on interest income and expenses reported by Pear and Apple, respectively. There are no graphs or diagrams in this text.
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