Ballard Corporation purchased 70 percent of the voting shares of Condor Company on January 1, 20X4, at

Question:

Ballard Corporation purchased 70 percent of the voting shares of Condor Company on January 1, 20X4, at underlying book value. It also purchased $\$ 100,000$ par value, 12 percent Condor Company bonds on that date. The bonds had been issued on January 1, 20X1, with a 10 -year maturity.

During preparation of the consolidated financial statements for December 31, 20X4, the following eliminating entry was made on the workpaper:

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a. What was the price paid by Ballard Corporation to purchase the Condor bonds?

b. What was the carrying amount of the bonds on the books of Condor Company on the date of purchase?

c. If Condor Company reports net income of $\$ 30,000$ in $20 \times 5$, what amount of income should be assigned to the noncontrolling interest in the $20 \times 5$ consolidated income statement?

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