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Subsidiary Bond Holdings
Farflung Corporation has in excess of 60 subsidiaries worldwide.
It owns 65 percent of the voting common stock of Micro Company and
80 percent of the shares of Eagle Corporation. Micro sold $400,000
par value first mortgage bonds at par value on January 2, 20X0, to
Independent Company. No intercorporate ownership exists between
Farflung and its subsidiaries and Independent.
On December 31, 20X4, Independent determined the need for cash
for...