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MC2.)Pascalian Company owns a 90% interest in Sapp Company. On January 1, 2013, Pascalian had $300,000,6% bonds outstanding with an unamortized premium of $9,000. The

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MC2.)Pascalian Company owns a 90% interest in Sapp Company. On January 1, 2013, Pascalian had $300,000,6% bonds outstanding with an unamortized premium of $9,000. The bonds mature on December 31, 2017. Sapp acquired one-third of Pascalian's bonds in the open market for $97,000 on January 1, 2013. Both companies use straight-line amortization of bond discounts/premiums. Interest is paid on December 31. The gain from the bond purchase that appeared on the December 31, 2013 consolidated income statement was: (4 pts.) A) $4,320. B) $4,800. C) $5,400. D) $6,000. MC Inder GAAP the

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