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1 . Pink Industries is a 7 0 % owned subsidiary of Swift Industries. On January 1 , 2 0 2 0 , Pink issued

1. Pink Industries is a 70% owned subsidiary of Swift Industries. On January 1,2020, Pink issued $100,000 of 10 year, 6% bonds for $86,580, to yield 8% interest. Interest is paid annually on January 1. The effective interest method is used to amortize the premium. Swift purchased the bonda for $84,901 on January 2,2022 when the market rate of interest was 9%. On the purchase date, the remaining discount on the bonds was $10,413. Pinks 2022 net income was $500,000.(Ch 5) look at Exercise 5-6
Required:
a. Prepare the eliminations and adjustments required for this purchase on the December 31,2022, consolidated worksheet. (You will need amortization schedules through January 1,2023)
b. Prepare the 2022 income distribution schedule for the NCI.

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