Question
Farley Corporation owns 70 percent of Snowball Enterprises stock. On January 1, 20X1, Farley sold $1 million par value, 7 percent (paid semiannually), 20-year, first
Farley Corporation owns 70 percent of Snowball Enterprises stock. On January 1, 20X1, Farley sold $1 million par value, 7 percent (paid semiannually), 20-year, first mortgage bonds to Kling Corporation at 97. On January 1, 20X8, Snowball purchased $300,000 par value of the Farley bonds directly from Kling for $296,880.
Required: |
Record the entry to eliminate the effects of the intercompany ownership in bonds for 20X8. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations. Round your final answers to nearest whole dollar.) |
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