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Par Inc owns 76.21% of Sub Corp. On January 1, Year 3, Sub purchased $136,041 face value of Par's 10.47% bonds for $113,001. On that
Par Inc owns 76.21% of Sub Corp. On January 1, Year 3, Sub purchased $136,041 face value of Par's 10.47% bonds for $113,001. On that date, Par's total bond liability consisted of $272,082 face-value bonds with an unamortized bond discount of $22,691. 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 would be the pre-tax gain or loss to the combined entity on the intercompany sale of the bonds? O a. $12,279 O b. $11,69 O c. $11,402 O d. $12,572 e $11.987
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