Question
In: Accounting
F owned 51% of the voting common stock of S. the parent’s interest was acquired several...
F owned 51% of the voting common stock of S. the parent’s interest was acquired several years ago on the date that the subsidiary was formed. Consequently, no goodwill or other allocation was recorded in connection with the acquisition price. On January 1, 2017 S sold $1,400,000 in ten-year bonds to the public at 106. The bonds pay a 10% interest rate every December 31. F acquired 40% of these bonds on the open January 1, 2018, for 96% of the face value. Both companies utilize the straight-line method of amortization. Prepare the consolidation entry in connection with these intra-entity bonds on December 31, 2018.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Fargus Corporation owned 51% of the voting common stock of Sanatee, Inc. The parent's interest was...
Fargus Corporation owned 51% of the voting common stock of
Sanatee, Inc. The parent's interest was acquired several years ago
on the date that the subsidiary was formed. Consequently, no
goodwill or other allocation was recorded in connection with the
acquisition price.
On January 1, 2010, Sanatee sold $1,400,000 in ten-year bonds to
the public at 108. The bonds pay a 10% interest rate every December
31. Fargus acquired 40% of these bonds on April 1, 2012, for 95% of...
Fargus Corporation owned 51% of the voting common stock of Sanatee, Inc. The parent's interest was...
Fargus Corporation owned 51% of the voting common stock of
Sanatee, Inc. The parent's interest was acquired several years ago
on the date that the subsidiary was formed. Consequently, no
goodwill or other allocation was recorded in connection with the
acquisition price.
On January 1, 2017, Sanatee sold $1,400,000 in ten-year bonds to
the public at 108. The bonds pay a 10% interest rate every December
31. Fargus acquired 40% of these bonds on January 1, 2019, for 95%
of...
Cairns owns 80 percent of the voting stock of Hamilton, Inc. The parent’s interest was acquired...
Cairns owns 80 percent of the voting stock of Hamilton, Inc. The
parent’s interest was acquired several years ago on the date that
the subsidiary was formed. Consequently, no goodwill or other
allocation was recorded in connection with the acquisition. Cairns
uses the equity method in its internal records to account for its
investment in Hamilton.
On January 1, 2017, Hamilton sold $1,500,000 in 10-year bonds to
the public at 105. The bonds had a cash interest rate of 8...
Cairns owns 75 percent of the voting stock of Hamilton, Inc. The parent’s interest was acquired...
Cairns owns 75 percent of the voting stock of Hamilton, Inc. The
parent’s interest was acquired several years ago on the date that
the subsidiary was formed. Consequently, no goodwill or other
allocation was recorded in connection with the acquisition. Cairns
uses the equity method in its internal records to account for its
investment in Hamilton.
On January 1, 2014, Hamilton sold $2,600,000 in 10-year bonds to
the public at 105. The bonds had a cash interest rate of 9...
Cairns owns 70 percent of the voting stock of Hamilton, Inc. The parent’s interest was acquired...
Cairns owns 70 percent of the voting stock of Hamilton, Inc. The
parent’s interest was acquired several years ago on the date that
the subsidiary was formed. Consequently, no goodwill or other
allocation was recorded in connection with the acquisition. Cairns
uses the equity method in its internal records to account for its
investment in Hamilton.
On January 1, 2014, Hamilton sold $2,500,000 in 10-year bonds to
the public at 105. The bonds had a cash interest rate of 10...
Cairns owns 80 percent of the voting stock of Hamilton, Inc. The parent’s interest was acquired...
Cairns owns 80 percent of the voting stock of Hamilton, Inc. The
parent’s interest was acquired several years ago on the date that
the subsidiary was formed. Consequently, no goodwill or other
allocation was recorded in connection with the acquisition. Cairns
uses the equity method in its internal records to account for its
investment in Hamilton.
On January 1, 2011, Hamilton sold
$1,500,000 in 10-year bonds to the public at 105. The bonds had a
cash interest rate of 8...
Cairns owns 70 percent of the voting stock of Hamilton, Inc. The parent’s interest was acquired...
Cairns owns 70 percent of the voting stock of Hamilton, Inc. The
parent’s interest was acquired several years ago on the date that
the subsidiary was formed. Consequently, no goodwill or other
allocation was recorded in connection with the acquisition. Cairns
uses the equity method in its internal records to account for its
investment in Hamilton. On January 1, 2014, Hamilton sold
$1,900,000 in 10-year bonds to the public at 110. The bonds had a
cash interest rate of 8...
Cairns owns 75 percent of the voting stock of Hamilton, Inc. The parent’s interest was acquired...
Cairns owns 75 percent of the voting stock of Hamilton, Inc. The
parent’s interest was acquired several years ago on the date that
the subsidiary was formed. Consequently, no goodwill or other
allocation was recorded in connection with the acquisition. Cairns
uses the equity method in its internal records to account for its
investment in Hamilton.
On January 1, 2014, Hamilton sold $2,600,000 in 10-year bonds to
the public at 105. The bonds had a cash interest rate of 9...
Cairns owns 75 percent of the voting stock of Hamilton, Inc. The parent’s interest was acquired...
Cairns owns 75 percent of the voting stock of Hamilton, Inc. The
parent’s interest was acquired several years ago on the date that
the subsidiary was formed. Consequently, no goodwill or other
allocation was recorded in connection with the acquisition. Cairns
uses the equity method in its internal records to account for its
investment in Hamilton. On January 1, 2014, Hamilton sold
$2,200,000 in 10-year bonds to the public at 105. The bonds had a
cash interest rate of 8...
Cairns owns 70 percent of the voting stock of Hamilton, Inc. The parent’s interest was acquired...
Cairns owns 70 percent of the voting stock of Hamilton, Inc. The
parent’s interest was acquired several years ago on the date that
the subsidiary was formed. Consequently, no goodwill or other
allocation was recorded in connection with the acquisition. Cairns
uses the equity method in its internal records to account for its
investment in Hamilton.
On January 1, 2014, Hamilton sold $1,100,000 in 10-year bonds to
the public at 110. The bonds had a cash interest rate of 8...
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