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Consolidation worksheet for gain on constructive retirement of subsidiary s debt with no AAP Equity method Assume that a Parent company acquires a 8 0
Consolidation worksheet for gain on constructive retirement of subsidiarys debt with no AAPEquity method
Assume that a Parent company acquires a interest in its Subsidiary on January On the date of acquisition, the fair value of the percent controlling interest was $ and the fair value of the percent noncontrolling interest was $ On January the book value of net assets equaled $ and the fair value of the identifiable net assets equaled the book value of identifiable net assets ie there was no AAP or Goodwill
On December the Subsidiary company issued $face percent, fiveyear bonds to an unaffiliated company for $ The bonds pay interest annually on December and the bond premium is amortized using the straightline method. This results in annual bondpayable premium amortization equal to $ per year.
On December the Parent paid $ to purchase all of the outstanding Subsidiary company bonds. The bond discount is amortized using the straightline method, which results in annual bondinvestment discount amortization equal to $ per year.
Use negative signs with your answers in the Consolidated column for: Cost of goods sold, all expenses
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