Question
A subsidiary has outstanding $100,000 of 8% bonds that were issued at face value. The parent purchased all the bonds o $96,000 wiht 5 years
A subsidiary has outstanding $100,000 of 8% bonds that were issued at face value. The parent purchased all the bonds o $96,000 wiht 5 years remaining to maturity. How will the parent's use of the effective interest amortization rather than straight-line amortization of the discount affect the consolidated financial statements?
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CIA Exam Practice Questions Certified Internal Auditor
Authors: The Internal Audit Foundation
1st Edition
163454045X, 978-1634540452
