1). Pro Corporation owns 80% the voting stock of Stu Corporation. On January 1, 2010, Prussia paid $391,000 cash for $400,000 par of Stad's 10% $1,000,000 par value outstanding bonds, due on April 1, 2015. Stu's bonds had a book value of $1,045,000 on January 1, 2010. Straight-line amortization is used. What amount of the gain or loss on the constructive retirement of $400,000 of Stad bonds on January 1, 2010 was reported in the 2010 consolidated income statement?

2). Use the following information to answer the question(s) below.

PilCorporation owns 80% of Spil Inc.'s common stock that was purchased at its underlying book value. At the time of purchase, the book value and fair value of Spillway's net assets were equal. The two companies report the following information for 2011 and 2012.

During 2011, one company sold inventory to the other company for $50,000 which cost the transferor $40,000. As of the end of 2011, 30% of the inventory was unsold. In 2012, the remaining inventory was resold outside the consolidated entity.

2011 Selected Data: Pil Spil

Sales Revenue $600,000 $320,000

Cost of Goods Sold 320,000 155,000

Other Expenses 100,000 89,000

Net Income $180,000 $76,000

Dividends Paid 19,000 0

2012 Selected Data: Paggle Spillway

Sales Revenue $580,000 $445,000

Cost of Goods Sold 300,000 180,000

Other Expenses 130,000 171,000

Net Income $150,000 $94,000

Dividends Paid 16,000 5,000

If the sale referred to above was a downstream sale, what will be the total sales revenue reported in the consolidated income statement for 2011?

3). Prol Company acquired an 90% interest in Sol Corporation on January 1, 2010. On January 1, 2011, Sol sold a building with a book value of $120,000 to Prol for $150,000. The building had a remaining useful life of ten years and no salvage value. Straight-line depreciation is used. The separate balance sheets of Prol and Sol on December 31, 2011 included the following balances:

Petrol Seadig

Buildings $500,000 $230,000

Accumulated Depr.- Buildings 180,000 79,000

Calculate the consolidated amounts for Buildings and Accumulated Depreciation - Buildings that appeared, respectively, on the balance sheet at December 31, 2011?

4). Pal Corporation owns an 80% interest in Sur Company acquired at book value several years ago. On January 2, 2011, Sur purchased $100,000 par of Pal's outstanding 10% bonds for $103,000. The bonds were issued at par and mature on January 1, 2014. Straight-line amortization is used. Separate incomes of Pal and Sur for 2011 are $350,000 and $120,000, respectively. Pal uses the equity method to account for the investment in Seri.

What was thecontrolling interest share of consolidated net income for 2011?

5). Pic 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. Sol is a 90%-owned subsidiary of Pic. On January 2, 2011, Sol Corporation purchased $150,000 par value of Pic outstanding bonds for $152,000. The bonds have interest payment dates of January 1 and July 1. Straight-line amortization is used.

Calculate the Bond Interest Receivable for 2011 of Pic bonds on Sol.