Consolidation is the process of combining financial results of various subsidiaries with the financial results of parent company. It is used only when parent company holds more than 50% of share of subsidiary company. Retirement of bond means repurchasing bonds from the investors that had been previously issued. It can be retired on the maturity date or before the maturity also. Once bond is retired then issuer eliminate the bond payable liability from his books. To choose: The correct answer.

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Answer 1

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Chapter 8, Problem 8.27.7BP

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Introduction: Consolidation is the process of combining financial results of various subsidiaries with the financial results of parent company. It is used only when parent company holds more than 50% of share of subsidiary company. Retirement of bond means repurchasing bonds from the investors that had been previously issued. It can be retired on the maturity date or before the maturity also. Once bond is retired then issuer eliminate the bond payable liability from his books.

To choose: The correct answer.

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Answer 2

Question

Chapter 8, Problem 8.27.7BP

To determine

Introduction: Consolidation is the process of combining financial results of various subsidiaries with the financial results of parent company. It is used only when parent company holds more than 50% of share of subsidiary company. Retirement of bond means repurchasing bonds from the investors that had been previously issued. It can be retired on the maturity date or before the maturity also. Once bond is retired then issuer eliminate the bond payable liability from his books.

To choose: The correct answer.

Expert Solution & Answer

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Answer 3

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Chapter 8, Problem 8.27.7BP

To determine

Introduction: Consolidation is the process of combining financial results of various subsidiaries with the financial results of parent company. It is used only when parent company holds more than 50% of share of subsidiary company. Retirement of bond means repurchasing bonds from the investors that had been previously issued. It can be retired on the maturity date or before the maturity also. Once bond is retired then issuer eliminate the bond payable liability from his books.

To choose: The correct answer.

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Answer 4

Question

Chapter 8, Problem 8.27.7BP

To determine

Introduction: Consolidation is the process of combining financial results of various subsidiaries with the financial results of parent company. It is used only when parent company holds more than 50% of share of subsidiary company. Retirement of bond means repurchasing bonds from the investors that had been previously issued. It can be retired on the maturity date or before the maturity also. Once bond is retired then issuer eliminate the bond payable liability from his books.

To choose: The correct answer.

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Answer 5

Chapter 8, Problem 8.27.7BP

To determine

Introduction: Consolidation is the process of combining financial results of various subsidiaries with the financial results of parent company. It is used only when parent company holds more than 50% of share of subsidiary company. Retirement of bond means repurchasing bonds from the investors that had been previously issued. It can be retired on the maturity date or before the maturity also. Once bond is retired then issuer eliminate the bond payable liability from his books.

To choose: The correct answer.

Answer 6

Chapter 8, Problem 8.27.7BP

To determine

Introduction: Consolidation is the process of combining financial results of various subsidiaries with the financial results of parent company. It is used only when parent company holds more than 50% of share of subsidiary company. Retirement of bond means repurchasing bonds from the investors that had been previously issued. It can be retired on the maturity date or before the maturity also. Once bond is retired then issuer eliminate the bond payable liability from his books.

To choose: The correct answer.

Answer 7

Chapter 8, Problem 8.27.7BP

To determine

Introduction: Consolidation is the process of combining financial results of various subsidiaries with the financial results of parent company. It is used only when parent company holds more than 50% of share of subsidiary company. Retirement of bond means repurchasing bonds from the investors that had been previously issued. It can be retired on the maturity date or before the maturity also. Once bond is retired then issuer eliminate the bond payable liability from his books.

To choose: The correct answer.

Answer 8

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Answer 10

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Answer 11

Ch. 8 - Prob. 8.1Q Ch. 8 - What is meant by a constructive bond retirement in...Ch. 8 - Prob. 8.3Q Ch. 8 - Prob. 8.4Q Ch. 8 - When a parent company sells land to a subsidiary...Ch. 8 - Prob. 8.7Q Ch. 8 - Prob. 8.8Q Ch. 8 - Prob. 8.9Q Ch. 8 - Prob. 8.10Q Ch. 8 - Prob. 8.11Q

Solution Summary: The author explains that consolidation is the process of combining financial results of various subsidiaries with the financial result of parent company. Retirement of bond means repurchasing bonds from investors that had been previously issued.

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Chapter 8 Solutions