In year B, Pellinore Co. buys some of the outstanding bonds of its subsidiary Sagramore Co. The resulting 'gain on constructive bond retirement and extinguishment' is 50. During year B, the interest elimination amount is 5. Also during year B, S has new unconfirmed interfirm losses of 30 and confirmations of previous interfirm losses of 20. S also has an interfirm gain of 25 in year B, but this amount is confirmed. P reports new unconfirmed interfirm losses of 40 and new unconfirmed interfirm gains of 15. S reports Net Income in year B of 650 and declares dividends on their common shares of 10. P owns 80% of S's common shares and reports Net Income and dividends of 1000 and 200, respectively. Total Consolidated Net Income is O a. 1000 b. 1225 O c. 1069 O d. 520

In year B, Pellinore Co. buys some of the outstanding bonds of its subsidiary Sagramore Co. The resulting 'gain on constructive bond retirement and extinguishment' is 50. During year B, the interest elimination amount is 5. Also during year B, S has new unconfirmed interfirm losses of 30 and confirmations of previous interfirm losses of 20. S also has an interfirm gain of 25 in year B, but this amount is confirmed. P reports new unconfirmed interfirm losses of 40 and new unconfirmed interfirm gains of 15. S reports Net Income in year B of 650 and declares dividends on their common shares of 10. P owns 80% of S's common shares and reports Net Income and dividends of 1000 and 200, respectively. Total Consolidated Net Income is O a. 1000 b. 1225 O c. 1069 O d. 520

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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NYK, Inc.retires a $45 million bond issue when the carrying value of the bonds is $43 million, but the market value of the bonds is $46 million. The entry to record the retirement will include: Select one: a. A debit of $3 million to Loss on Bond Retirement. b. A credit of $1 million to Gain on Bond Retirement. c. A debit of $1 million to Loss on Bond Retirement d. No gain or loss on retirement e. A credit of $2 million to Gain on Bond Retirement.
Three years ago American Insulation Corporation issued 10%, $800,000, 10-year bonds for $770,000. American Insulation exercised its call privilege and retired the bonds for $790,000. The corporation uses the straight-line method to determine interest. Required: Prepare the journal entry to record the call of the bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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Company has bonds outstanding with a par value of $140,000. The unamortized premium on these bonds is $3,500. If the company retired these bonds at a call price of $137,200, the gain or loss on this retirement is: A. $2,800 gain B. $2,800 loss C. $6,300 gain D. $3,500 gain E. $3,500 loss
Winston Corporation has attached in SS below thanks for help elparpareci apprecaited it
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