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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

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Consolidation worksheet for gain on constructive retirement of subsidiarys debt with no AAPEquity method
Assume that a Parent company acquires a 80% interest in its Subsidiary on January 1,2018. On the date of acquisition, the fair value of the 80 percent controlling interest was $768,000 and the fair value of the 20 percent noncontrolling interest was $192,000. On January 1,2018, the book value of net assets equaled $960,000 and the fair value of the identifiable net assets equaled the book value of identifiable net assets (i.e., there was no AAP or Goodwill).
On December 31,2019, the Subsidiary company issued $960,000(face)8 percent, five-year bonds to an unaffiliated company for $998,400. The bonds pay interest annually on December 31, and the bond premium is amortized using the straight-line method. This results in annual bond-payable premium amortization equal to $7,680 per year.
On December 31,2021, the Parent paid $931,200 to purchase all of the outstanding Subsidiary company bonds. The bond discount is amortized using the straight-line method, which results in annual bond-investment discount amortization equal to $9,600 per year.
Use negative signs with your answers in the Consolidated column for: Cost of goods sold, all expenses
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