
Concept explainers
a
Concept introduction:
Retirement of bonds: Under constrictive retirement, the gain or loss on retirement of bonds is reported only in the consolidated income statement, if the bonds of an affiliate are purchased from an unconnected entity value equal to the liability on such bonds is reported, before preparation of consolidated financial statement all effects of gain or loss and liability is eliminated.
The
b
Concept introduction:
Retirement of bonds: Under constrictive retirement, the gain or loss on retirement of bonds is reported only in the consolidated income statement, if the bonds of an affiliate are purchased from an unconnected entity value equal to the liability on such bonds is reported, before preparation of consolidated financial statement all effects of gain or loss and liability is eliminated.
Elimination entry for interoperate bond ownership for consolidation worksheet for the year December 31 20X5.
c
Concept introduction:
Retirement of bonds: Under constrictive retirement, the gain or loss on retirement of bonds is reported only in the consolidated income statement, if the bonds of an affiliate are purchased from an unconnected entity value equal to the liability on such bonds is reported, before preparation of consolidated financial statement all effects of gain or loss and liability is eliminated.
The amount on consolidated net income and income to controlling interest to be reported in income statement for 20X5 and 20X6.

Want to see the full answer?
Check out a sample textbook solution
Chapter 8 Solutions
Advanced Financial Accounting
- Need answer general accounting questionarrow_forwardNorth wave Technologies exchanges equipment in a like-kind exchange. North wave receives equipment with a fair market value of $60,000 and transfers: • • Equipment worth $50,000 (with an adjusted basis of $30,000) Plus cash of $10,000 What is North wave Technologies' realized gain and recognized gain?arrow_forwardI am searching for the correct answer to this financial accounting problem with proper accounting rules.arrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education





