Question
On January 1, Company A borrows $200,000 from Company B by issuing to Company A $200,000 par value , 8%, 10 year bonds. Because the
On January 1, Company A borrows $200,000 from Company B by issuing to Company A $200,000 par value , 8%, 10 year bonds. Because the market rate was higher than 8%.A discount of $500 was provided on the boond.
During the year, Company A accrued interest of $16,000, and Company B recorded the same in interest income.
Which two accounts must used to eliminate this intercompany debt transfer?
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The two accounts that must be used to eliminate this intercompany debt transfer are 1 Bonds Payable ...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
