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9.1 Suspect Company issued $600,000 of 9 percent first mortgage bonds on January 1,201, at 103 . The bonds mature in 20 years and pay
9.1
Suspect Company issued $600,000 of 9 percent first mortgage bonds on January 1,201, at 103 . The bonds mature in 20 years and pay Interest semlannually on January 1 and July 1. Prime Corporation purchased $400,000 of Suspect's bonds from the original purchaser on December 31, 20X5, for $397,000. Prime owns 60 percent of Suspect's voting common stock. Requlred: a. Prepare the worksheet consolidation entry or entrles needed to remove the effects of the intercorporate bond ownership in preparing consolidated financlal statements for 205. (If no entry is requlred for a transaction/event, select "No journal entry requlred" In the first account fleld. Do not round your Intermedlate calculations. Round your final answers to nearest whole dollar.) b. Prepare the worksheet consolidation entry or entrles needed to remove the effects of the intercorporate bond ownership in preparing consolidated financlal statements for 206. (If no entry is requlred for a transaction/event, select "No journal entry required" In the first account fleld. Do not round your Intermedlate calculations. Round your final answers to nearest whole dollar.)Step by Step Solution
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