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Paulina, Incorporated, owns 8 0 percent of Southport Company. On January 1 , 2 0 2 1 , Paulina acquires half of Southport s $
Paulina, Incorporated, owns percent of Southport Company. On January Paulina acquires half of Southports $ outstanding year bonds. These bonds had been sold on the open market on January at a percent effective rate. The bonds pay a cash interest rate of percent every December and are scheduled to come due on December Southport issued this debt originally for $ Paulina paid $ for this investment, indicating an percent effective yield. Assuming that both parties use the effective rate method, what gain or loss from the retirement of this debt should be reported on the consolidated income statement for Assuming that both parties use the effective rate method, what balances should appear in the Investment in Southport Bonds account on Paulinas records and the Bonds Payable account of Southport as of December Assuming that both parties use the straightline method, what consolidation entry would be required on December because of these bonds? Assume that the parent is not applying the equity method.
Paulina, Incorporated, owns percent of Southport Company. On January Paulina acquires half of Southports $ outstanding year bonds. These bonds had been sold on the open market on January at a percent effective rate. The bonds pay a cash interest rate of percent every December and are scheduled to come due on December Southport issued this debt originally for $ Paulina paid $ for this investment, indicating an percent effective yield.
Assuming that both parties use the effective rate method, what gain or loss from the retirement of this debt should be reported on the consolidated income statement for
Assuming that both parties use the effective rate method, what balances should appear in the Investment in Southport Bonds account on Paulinas records and the Bonds Payable account of Southport as of December
Assuming that both parties use the straightline method, what consolidation entry would be required on December because of these bonds? Assume that the parent is not applying the equity method.
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