Parent owns 100% of subsidiary. Subsidiary has bonds payable to third parties of $5,500,000., plus an unamortized premium with a credit balance of $500,000.  In 2022, parent purchases all outstanding bonds from third parties for $6,400,000. What result is reported in the 2022 consolidated financial statements.   a. Consolidated loss on “retirement” of bonds $400,000   b. No gain or loss is reported in the consolidated totals on this intercompany transaction.   c. Consolidated loss on “retirement” of bonds of $1,400,000   d. Consolidated gain on “retirement” of bonds of $1,100,000   e. Consolidated gain on “retirement” of bonds of $400,000

Q: A Parent Company owns 100 percent of its Subsidiary. During 2021, the Parent company reports net…

A: Consolidated net income is the combined net income of a parent company and its subsidiary after…

Q: 42. Company S is a 100%-owned subsidiary of Company P. On January I, Company S had $100,000 face…

A: Answer:- correct option is a) 4,000.

Q: Effect on consolidated net income of acquisition of affiliate's debt from non-affiliate A Parent…

A: Consolidated financial statements are the financial statements that collectively represent the…

Q: Oriole Company acquired an 80% interest in the common stock of Sunland Company for $1,540,400 on…

A: Non controlling interest % = Total interest - Controlling interest = 100% - 80% = 20%

Q: On January 4, 2021, Jonathan Company purchased 75% interest in Monica Corporation for P300,000.…

A: Consolidation is the process of integrating a parent company's and its subsidiaries' financial…

Q: what amount would "NCI in Net Assets of Subsidiary" be reported? A. B. C. D. $250,000. $700,000.…

A: Company acquire any other entity is known as acquisition of other company. This may be full…

Q: Illustration 2. Non-Controlling Interest On January 1, 2021, Inahan Co. acquired 75% of the voting…

A: 1. Previously held equity untereat in the aquiree is  a 0.00 since Inhaan Co. acquired 75% share on…

Q: Stick Company reports net assets with a book value and fair value of $204,000. Paste Corporation…

A: Consolidation accounting appears to be the process of integrating subsidiary businesses' financial…

Q: s for $390,000. Both firms use the straight-line method of amortization.   The interest adjustment…

A: Amortization - Amortization is the process of deducting an intangible asset's cost over the course…

Q: Compute the total noncontrolling interest to be reported in the consolidated balance sheet assuming…

A: In parent company concept, non controlling interest will be calculated on net assets of the company…

Q: Suspect Company Issued $720,000 of 8 percent first mortgage bonds on January 1, 20X1, at 105. The…

A: Consolidation is an activity in which financial statements of a parent and its subsidiary are…

Q: ompany percent first mortgage bonds ure in terest semiannually on January 1 and July 1. Prime…

A: Corporate Bonds -Corporate bonds are obligations that corporations issue to both public and private…

Q: REQUIRED Prepare workpapers to consolidate the financial statements of Pop Corporation and…

A: Adjustment for Excess Amortization of Overvalued Assets:Excess amortization for the overvalued land:…

Q: Solely Stock. S transferred appreciated property to a newly created corporation for 60% of its stock…

A: When the capital asset is sold above than its carrying value, the gain incurred on such transaction…

Q: 4) Subsidiary purchases parent bonds Parent Company acquired an 80 percent interest in Sub Company…

A: Controlling interest refers to the control by one or a group of persons on the stock of a business,…

Q: n 1 July 2020, Kent Ltd acquired all the share capital (Ex-dividend) of Sub Ltd for $500,000. The…

A: Consolidation - Accounting's consolidation procedure combines the mother branch's finances with…

Q: If CARDO Co purchases the net assets of SYANO Co by issuing 5,000 shares of their P10 par value…

A: Calculation of Consolidate Total Liabilities at the date of Acquisition:

Q: Consolidated amounts when affiliate's debt is acquired from non-affiliate Assume that a Parent…

A: ConsolidationIt refers to the merging of two or more financial items such as assets, liabilities or…

Q: Parent Company sells land with book value of P5,000 to Subsidiary Company for P6,000 in 2020.…

A: The question is multiple choice question Required  Choose the Correct Option

Q: Dipendra Ltd owns all the shares capital of Kiran Ltd. On 1 September 2021, Dipendra Ltd sold…

A: Inter group sales is to be eliminated because from group prospective their is no sales and no…

Q: Q7- On January 1, 20X8, Zeta Company acquired 85 percent of Theta Company's common stock for…

A: Consolidation is the process used when two business combined together in a single ownership in this…

Q: Big Co. owns 80% of the stock of Little Co. On 1/1/23 Little issues $100,000 of 10%, 10 year bonds…

A: A journal entry is a record of the business transactions in the accounting books of a business.

Q: ubsidiary company issued $1,000,000 (face) 6 percent, five-year bonds to an unaffiliated company for…

A: Parent company acquires an 80% interest in its Subsidiary on January 1, 2020. On January 1, 2020,…

Q: Parent Ltd (Parent) controls a subsidiary Sub Ltd (Sub), in which it owns 70 per cent of the issued…

A: Consolidation- Consolidation is a statutory process in which different business entities join forces…

Q: b. Prepare the worksheet consolidation entry or entries needed to remove the effects of the…

A: Corporate Bonds -Corporate bonds are obligations that corporations issue to both public and private…

Q: The parent acquired 75% of the ordinary shares of Sub with acquired control. The summarized…

A: On preparing consolidated financial statements, the inter party transactions must be eliminated.

Q: P Inc. owns S Corp.  For the current year, P reports net income (without consideration of its…

A:

Q: SUB is an 80% owned subsidiary of PAR. SUB issued $100,000 of 8%, 10-year bonds for $95,000 on…

A: Issued 100,000 8% bonds  Issue price=95000 Issue date=01/01/2011 Returement value=1,02,000…

Q: Required information Postage Corporation acquired 75 percent of Stamp Corporation's common stock on…

A: Balance sheet is the financial statement that records all the assets, liabilities and stockholders'…

Q: ets was $2,100,000, ontrolling interest shares of llar amount of noncontrollir

A: Amount of non controlling interest that should appear in consolidate balance sheet =…

Q: Company S is a 100%-owned subsidiary of Company P. On January 1, 2016, Company S had $100,000 of 8%…

A: Given: Price of the bond = $ 100,000 Bond rate = 8 % Amount of unamortized discount = $ 5,000

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.