8. Parent owns 70% of subsidiary. Subsidiary has bonds payable to third parties with a book value of $6,000,000., net of unamortized premium. In 2019.parent decides to purchase all outstanding bonds from third parties for an amount greater than $6,000,000. What result is reported in the 2019 consolidated financial statements. a. Consolidated gain on "retirement of bonds b. Consolidated loss on "retirement of bonds c. Gain on "retirement booked on subsidiary books d. Gain on "retirement booked on parent books e. No gain or loss is reported in the consolidated totals 9. Unger has the following third party and intersegment revenue for its 10 operating segments Third party revenue $4,000,000 Intersegment revenue $1,000,000 Unger must disclose enough segments so that: a. The sum of the third party and intersegment revenues of the disclosed segments exceeds $500,000 b. The sum of the third party and intersegment revenues of the disclosed segments exceeds $3,000,000. c. The sum of the third party revenues of the disclosed segments exceeds $3,000,000. d. The sum of the third party and intersegment revenues of the disclosed segments exceeds $3,750,000 e. The sum of the third party revenues of the disclosed segments exceeds $3,750,000 10. How are intersegment revenues handled in the various segment reporting tests a. included in the 75% test, and excluded in the revenue, customer and P & L tests b. included in the revenue and customer test, and excluded in the 75% and P & L tests c. included in the revenue, P&L and customer tests and excluded in the 75% tests d. included in the customer test and excluded in the revenue, P & L and 75% tests e. included in the revenue and P&L tests and excluded in the customer and 75% tests Answers: 8. Parent owns 70% of subsidiary. Subsidiary has bonds payable to third parties with a book value of $6,000,000., net of unamortized premium. In 2019.parent decides to purchase all outstanding bonds from third parties for an amount greater than $6,000,000. What result is reported in the 2019 consolidated financial statements. a. Consolidated gain on "retirement of bonds b. Consolidated loss on "retirement of bonds c. Gain on "retirement booked on subsidiary books d. Gain on "retirement booked on parent books e. No gain or loss is reported in the consolidated totals 9. Unger has the following third party and intersegment revenue for its 10 operating segments Third party revenue $4,000,000 Intersegment revenue $1,000,000 Unger must disclose enough segments so that: a. The sum of the third party and intersegment revenues of the disclosed segments exceeds $500,000 b. The sum of the third party and intersegment revenues of the disclosed segments exceeds $3,000,000. c. The sum of the third party revenues of the disclosed segments exceeds $3,000,000. d. The sum of the third party and intersegment revenues of the disclosed segments exceeds $3,750,000 e. The sum of the third party revenues of the disclosed segments exceeds $3,750,000 10. How are intersegment revenues handled in the various segment reporting tests a. included in the 75% test, and excluded in the revenue, customer and P & L tests b. included in the revenue and customer test, and excluded in the 75% and P & L tests c. included in the revenue, P&L and customer tests and excluded in the 75% tests d. included in the customer test and excluded in the revenue, P & L and 75% tests e. included in the revenue and P&L tests and excluded in the customer and 75% tests Answers