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Consolidated gain or loss on constructive retirement of debt Assume that a Parent Company owns 100 percent of its subsidiary. Each of the following independent

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Consolidated gain or loss on constructive retirement of debt Assume that a Parent Company owns 100 percent of its subsidiary. Each of the following independent scenarios describes an intercompany bond transaction between the Parent and the Subsidiary, For each independent case, determine the amount of gain or loss on constructive retirement of the bond reported in the consolidated income statement for the year ended December 31, 2019. Assume straight line amortization a. On June 30, 2019. P issues directly to Sbonds that have a par value of $100.000. paid $104,000 for the bonds. The term of the bonds is 10 years and they have an 8 percent stated interest rate. Interest is paid annually on December 31. b. On January 1, 2015. P issues to an unaffiliated company bonds that have a par value of $100.000. The unaffiliated company paid par value for the bonds. On December 31, 2019, 5 paid $70,000 for 70 percent of the outstanding bonds. The bond term is 10 years and they have an 8 percent stated interest rate. Interest is paid annually on December 31 con January 1, 2015. Pissues to an unaffiliated company bonds that have a par value of $100,000. The unafiliated company paid 103 percent of par value for the bonds. Five years later, paid 595,000 for all of the outstanding bonds. The bond term is 10 years and they have an 8 percent stated interest rate. Interest is paid annually on December 31 d. On january 1, 2015. S issues to an unaffiated company bonds that have a par value of $100,000. The unaffiliated company paid 6 percent of par value for the bonds. Five years later, P paid 572,100 for 10 percent of the outstanding bonds. The band term is 10 years and they have an percent stated interest rate interest is paid annually on December 31 Note: If there is no gain or loss, enterrero for the amount and select N/A for Gain or loss answer Do not use n ative signs with any of your answers Case Amount Gain or loss a 5 ONIA 10 NA 3000 W Bain 2000 Loss Check

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