Hi,

I am having trouble with the 5 questions. please help me. they are multiple choice and should be simple to answer

Question 1.1. Culver owns 80 percent of the common stock of Fowler Company. Culver also purchases some of Fowler's bonds directly from Fowler and holds the bonds as a longterm investment. How is the acquisition of the bonds treated for consolidated reporting purposes? (Points : 1) As a retirement of bonds. As an increase in the Bonds Payable account on Fowler's books. Everything related to the bonds is eliminated in the consolidation worksheet, and nothing related to the bonds appears in the consolidated financial statements. As an increase in noncurrent assets. Question 2.2. Hunter Corporation holds 80 percent of the voting shares of Moss Company. On January 1, 20X8, Moss purchased $100,000 par value 12 percent first mortgage bonds of Hunter from Cruse for $115,000. Hunter originally issued the bonds to Cruse on January 1, 20X6, for $110,000. The bonds have an 8year maturity from the date of issue. Moss reported net income of $65,000 for 20X8, and Hunter reported income (excluding income from ownership of Moss's stock) of $90,000. Based on the information given, what amount of interest expense does Hunter record annually? (Points : 1) $10,750 $9,500 $2,500 $12,000 Question 4.4. Granite Company issued $200,000 of 10 percent first mortgage bonds on January 1, 20X4, at 105. The bonds mature in 10 years and pay interest semiannually on January 1 and July 1. Mortar Corporation purchased $140,000 of Granite's bonds from the original purchaser on December 31, 20X8, for $125,000. Mortar owns 75 percent of Granite's voting common stock. Based on the information given, what amount of premium on bonds payable will be eliminated in the preparation of the 20X8 consolidated financial statements? (Points : 1) $3,500 $2,800 $5,000 $2,500 Question 7.7. Which of the following statements is (are) correct? I. The amount assigned to the noncontrolling interest may be affected by a constructive retirement of bonds. II. A constructive retirement of bonds normally results in an extraordinary gain or loss. III. In constructive retirement, the bonds are considered outstanding, even though they are treated as if they were retired in preparing consolidated financial statements. (Points : 1) I II I and III I, II, and III Question 9.9. Earth Company owns 100 percent of the capital stock of both Mars Corporation and Venus Corporation. Mars purchases merchandise inventory from Venus at 125 percent of Venus's cost. During 20X8, Venus sold inventory to Mars that it had purchased for $25,000. Mars sold all of this merchandise to unrelated customers for $56,892 during 20X8. In preparing combined financial statements for 20X8, Earth's bookkeeper disregarded the common ownership of Mars and Venus. Based on the information, what amount should be eliminated from cost of goods sold in the combined income statement for 20X8? (Points : 1) $31,250 $25,000 $56,892 $6,250