10. The consolidation entry to eliminate the intercompany interest receivable/payable on Dec 31, 20X2 includes a credit of a. Interest receivable of $4,500 b. Interest receivable of $4,264 c. Interest payable of $4,500 d. Interest payable of $4,264 e. Interest asset of $4,500 Questions 11-16 are based on the following information: Suspect Company issued $600,000 of 9% first mortgage bonds on January 1, 20X1, at from the original purchaser on December 31, 20X5, for $397,000(market rate=9.093%). on January 1 and July 1. Prime Corporation purchased $400,000 as of Suspect's bonds 103 (market rate 8.681%). The bonds mature in 20 years and pay interest semiannually Prime owns 60% of Suspect's voting common stock. 11. On Dec 31, 20X5, Prime should recognize in its book a debit of a. Gain on bond purchase of $13,579; b. Loss on bond purchase of $13,579; c. Investment in Suspect of $13,579: d. Income from Suspect of $8,147 e Investment in Suspect of $8,147 12. The consolidation entry to eliminate intercompany bond holding on Dec 31, 20X5 includes a credit of: a. Bonds payable of $400,000 b. Bonds receivable of $400,000; c. Premium on bonds payable of $10,579 d. Discount on bonds payable of $10,579 e. Gain on bonds retirement of $13,579 13. The consolidation entry to eliminate the intercompany interest receivable/payable on Dec 31, 20X5 includes a credit of a. Investment in bonds of $10,800 b. Interest payable of $18,000 c. Interest payable of $10,800 d. Interest receivable of $18,000 e. Interest receivable of $10,800 14. On Dec 31, 20X6, Prime Corporation should recognize in its own book gain/loss from the bond holding with a credit of: a. Investment in the Suspect of $278 b. Income from the Suspect of $278 c. Gain on bond retirement of $278 d. Gain on bond retirement of $464 e. Income from the Suspect of $464