Please answer ASAP. I give an UPVOTE
Orange Co, owned 80% interest of Kiwi Co. Orange insued $600,000 of its 8% bonds payable years ago when the market rate was 10%. The carrying value of the bonds payable was \$535,978 in the beginning of 2023. On 1/1 of 2023 Kiwi acquired all bonds payable issued by Orange at a price of $480,775, based on a 12% effective rate. The amortization tables prepared by Orange and Kiwi for the current year are provided below. Table 1. Amortization table for Bonds Pavahin e 2. Amortization table for Investment in Rnnan t. 1. Based on the information given, determine the gain or loss on retirement of bonds for 2023. Provide your answer by completing the sentence below. Specifically, specify whether it is a "gain" or a (1) on retirement of bonds is $(2) (1): (2): 2. Below are selected accounts to be included in consolidation entry B for 2023 . Based on the tables provided above, indicate how each account will be recorded in the consolidation (3) and enter the amount in boxes (a)-(c). In example based on "Bonds payable" has been provided. ( 6.5 points total; 1.5 points (c) and 1 point to each of the others) 3. Ignore your answer in requirement 1. Now assume that there was a loss on retirement of bonds of $27,000 and same amounts of interest expense/revenue from the tables. Further assume that Kiwi reports net income of $390,000 for 2023 and the total annual excess amortization resulting from the acquisition was $17,500. Based on the new assumptions, allocate Kiwis 2023 net income to the controlling interest (CI) and noncontrolling interest ( NCI ). (5 points to the Cl and 3 points to NCl ) Inswer: A To NCl: Orange Co, owned 80% interest of Kiwi Co. Orange insued $600,000 of its 8% bonds payable years ago when the market rate was 10%. The carrying value of the bonds payable was \$535,978 in the beginning of 2023. On 1/1 of 2023 Kiwi acquired all bonds payable issued by Orange at a price of $480,775, based on a 12% effective rate. The amortization tables prepared by Orange and Kiwi for the current year are provided below. Table 1. Amortization table for Bonds Pavahin e 2. Amortization table for Investment in Rnnan t. 1. Based on the information given, determine the gain or loss on retirement of bonds for 2023. Provide your answer by completing the sentence below. Specifically, specify whether it is a "gain" or a (1) on retirement of bonds is $(2) (1): (2): 2. Below are selected accounts to be included in consolidation entry B for 2023 . Based on the tables provided above, indicate how each account will be recorded in the consolidation (3) and enter the amount in boxes (a)-(c). In example based on "Bonds payable" has been provided. ( 6.5 points total; 1.5 points (c) and 1 point to each of the others) 3. Ignore your answer in requirement 1. Now assume that there was a loss on retirement of bonds of $27,000 and same amounts of interest expense/revenue from the tables. Further assume that Kiwi reports net income of $390,000 for 2023 and the total annual excess amortization resulting from the acquisition was $17,500. Based on the new assumptions, allocate Kiwis 2023 net income to the controlling interest (CI) and noncontrolling interest ( NCI ). (5 points to the Cl and 3 points to NCl ) Inswer: A To NCl
