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Big owns 8 0 % of Little Assume that at aqusition therr was no differential On 1 1 ? 2 2 Little issues $ 1
Big owns of Little
Assume that at aqusition therr was no differential
On Little issues $ of year bonds at
The bonds are dated and pay interest each
On Big buys the bonds on the open market at
Worksheets for and are provided below. Provide appropriate elimination entries and complete the works
Both firms use straightline amortization, and Big uses the full equity method to account for their investment in Little
tableBig,Little,drcrConsolidatedSalesInterest expense,,Interest revenue,Other expenses,Gainloss on bond retirement,,,,,Investment income,Net income,,,,,Income to NC Interest,,,,,Income to controlling interest,,,,,Beginning REAdd: Income,,,,,Less: Dividends,,Ending RECurrent assets,Investment in Little,Investment in bonds,Other Noncurrent assets,Current liabilties,Bonds payable,,Premium on bonds,,Common stock,Retained earnings,,,,,NC Interest,,,,,
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