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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 80% of Little
Assume that at aqusition therr was no differential
On 11?22 Little issues $100,000 of 10%,10 year bonds at 103.
The bonds are dated 11?22, and pay interest each 1231
On 1/1/24 Big buys the bonds on the open market at 102
Worksheets for 2024 and 2025 are provided below. Provide appropriate elimination entries and complete the works
Both firms use straight-line amortization, and Big uses the full equity method to account for their investment in Little
\table[[2024,Big,Little,dr,cr,Consolidated],[Sales,290,000,245,000,,,],[Interest expense,,9,700,,,],[Interest revenue,9,750,,,,],[Other expenses,276,000,230,000,,,],[Gain/loss on bond retirement,,,,,],[Investment income,4,520,,,,],[Net income,,,,,],[Income to NC Interest,,,,,],[Income to controlling interest,,,,,],[,,,,,],[Beginning R/E,200,000,150,000,,,],[Add: Income,,,,,],[Less: Dividends,,10,000,,,],[Ending R/E,,,,,],[,,,,,],[Current assets,20,000,50,000,,,],[Investment in Little,148,520,,,,],[Investment in bonds,101,750,,,,],[Other Non-current assets,138,000,267,400,,,],[,,,,,],[Current liabilties,60,000,30,000,,,],[Bonds payable,,100,000,,,],[Premium on bonds,,2,100,,,],[Common stock,120,000,40,000,,,],[Retained earnings,,,,,],[NC Interest,,,,,],[,,,,,]]
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