Question
Par Inc owns 75.25% of Sub Corp. On January 1, Year 3, Sub purchased $128,851 face value of Par's 9.99% bonds for $107,011. On that
Par Inc owns 75.25% of Sub Corp. On January 1, Year 3, Sub purchased $128,851 face value of Par's 9.99% bonds for $107,011. On that date, Par's total bond liability consisted of $257,702 face-value bonds with an unamortized bond discount of $21,489. Interest payments are June 30 and December 31 each year. Straight-line method is used for bond amortization. Both companies have a Dec 31 year end. What amount would be shown on Par's Consolidated Statement of Financial Position under Bonds Payable on Dec 31, Year 3? a. $113,222 b. $116,201 c. $107,263 d. $110,242 e. $119,181
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