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18-21 is one whole question please answer the parts (For questions 18-21). You can use a blank excel spreadsheet. SUB is an 80% owned subsidiary
18-21 is one whole question please answer the parts
(For questions 18-21). You can use a blank excel spreadsheet. SUB is an 80% owned subsidiary of PAR. SUB issued $100,000 of 8%, 5- year bonds for $95,000 on 1/1/2011. Annual interest is paid on 12/31. PAR purchased the bonds on 1/1/2013 for $101,500. Both companies use the straight-line method to amortize the premium/discount on the bonds. 18. How much gain or loss on retirement should be reported in 2013 consolidated statements? O 4,500 loss 0 2,500 gain O 2,000 loss 0 2.500 loss 19. The net adjustment needed to consolidated income in the consolidation process for 2013 is: (hint: subsidiary income distribution schedule) O 3,500 decrease O 1,000 increase O 4,000 decrease O 3,000 decrease 20. The elimination and adjustment process for 2013 consolidated statements include: O Credit Investment in Subsidiary Bond 101,500 O Debit Interest Revenue 7,500 O Credit Discount 500 O Credit Interest Expense 8,000 21. The elimination and adjustment process for 2014 consolidated statements include: O Credit Investment in Subsidiary Bond 101,500 O Credit Discount 500 O Debit Bond Payable 99,000 O Debit Retained Earnings - PAR 2,400Step by Step Solution
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