1) Potty Corporation issued six thousand, $1,000 par, 6% bonds on January 1, 2010, at par. Interest is paid on January 1 and July 1 of each year; the bonds mature on January 1, 2015. On January 2, 2012, Scale Corporation, a 75%-owned subsidiary of Potty, purchased 3,000 of the bonds on the open market at 102.50. Potty's separate net income for 2012 included the annual interest expense for all 3,000 bonds. Scale's separate net income for 2012 was $400,000, which included the bond interest received on July 1 as well as the accrual of bond interest revenue earned on December 31. Both companies use straight-line amortization of bond discounts/premiums.

Using the original information, calculate the balances for the Bonds Payable and Bond Interest Payable accounts, respectively, for the consolidated balance sheet for December 31, 2013.

2) Pli Inc. had $600,000 par of 8% bonds payable outstanding on January 1, 2011 due January 1, 2015 with an unamortized discount of $12,000. Sat is a 90%-owned subsidiary of Pli. On January 2, 2011, Sat Corporation purchased $150,000 par value of Pli's outstanding bonds for $152,000. The bonds have interest payment dates of January 1 and July 1. Straight-line amortization is used.

What is the amount of Bonds Payable in the December 31, 2011 consolidated balance sheet of Pli Corporation and Subsidiary

3) On January 1, 2010, Skully Corporation purchased a delivery truck with an expected useful life of five years, and a salvage value of $8,000. On January 1, 2012, Skully sold the truck to Pac Corporation. Pac assumed the same salvage value and remaining life of three years used by Skully. Straight-line depreciation is used by both companies. On January 1, 2012, Skully recorded the following journal entry:

Debit Credit

Cash 50,000

Accumulated depreciation 18,000

ruck 53,000

Gain on Sale of Truck 15,000

Pac holds 60% of Skully. Skully reported net income of $55,000 in 2012 and Pac’s separate net income (excludes interest in Skully) for 2012 was $98,000.

What was the controlling interest share in consolidated net income for 2012?

4) Pley Corporation sold equipment to its 90%-owned subsidiary, Sour Corp., on January 1, 2012. Pley sold the equipment for $100,000 when its book value was $75,000 and it had a 5-year remaining useful life with no expected salvage value. Straight-line depreciation is used by both companies. Separate balance sheets for Pley and Sour included the following equipment and accumulated depreciation amounts on December 31, 2012 Pley Sour

Equipment $850,000 $300,000

Less: Accumulated depreciation (200,000) (60,000)

Equipment-net $650,000 $240,000

Calculate the Consolidated amounts for equipment and accumulated depreciation in December 31, 2012

5) On January 1, 2010, Sil Corporation purchased a delivery truck with an expected useful life of five years, and a salvage value of $8,000. On January 1, 2012, Sil sold the truck to Pil Corporation. Pil assumed the same salvage value and remaining life of three years used by Sil. Straight-line depreciation is used by both companies. On January 1, 2012, Sil recorded the following journal entry:

Debit Credit

Cash 50,000

Accumulated depreciation 18,000

Truck 53,000

Gain on Sale of Truck 15,000

Pil holds 60% of Sil. Sil reported net income of $55,000 in 2012 and Pil's separate net income (excludes interest in Sil) for 2012 was $98,000.

In preparing the consolidated financial statements for 2012, what will be the elimination entry for depreciation expense? ______

A) credit for $5,000. B) debit for $15,000.

C) debit for $5,000. D) credit for $15,000.