At January 1, Seacoast Company, an 80% - owned subsidiary of Plantation Corporation, had $1 million face amount of 14% bonds outstanding. They had been issued at face amount. Market conditions at January 1 provided a 10% yield rate when Plantation purchased these bonds in the open market for $1.1 million. Which of the following amounts should be included in a consolidated income statement for the year? A. Bond interest expense of $140,000. B. Bond interest revenue of $110,000. C. Loss of $100,000. D. Loss of $80,000.

At January 1, Seacoast Company, an 80% - owned subsidiary of Plantation Corporation, had $1 million face amount of 14% bonds outstanding. They had been issued at face amount. Market conditions at January 1 provided a 10% yield rate when Plantation purchased these bonds in the open market for $1.1 million. Which of the following amounts should be included in a consolidated income statement for the year? A. Bond interest expense of $140,000. B. Bond interest revenue of $110,000. C. Loss of $100,000. D. Loss of $80,000.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 4EA: On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated...

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