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Please show all the calculations QUESTION 2 (15 marks) Pebble Beach Inc. owns 80% of the common shares of Skokie Corp. On January 1, 2018,

Please show all the calculations

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QUESTION 2 (15 marks) Pebble Beach Inc. owns 80% of the common shares of Skokie Corp. On January 1, 2018, Pebble Beach issued bonds with a par value of $410,000 which will mature on January 1, 2023. The bonds bear interest at an annual rate of 9%, with annual interest payments made each December 3]\". At the date of issue of the bonds, Pebble Beach received proceeds of $400,000. On January 1, 2020, Skokie purchased 60% of Pebble Beach's bonds on the open market for $225,000. Both companies use the effective interest method. Both companies have a December 31st year- end and pay income taxes at a rate of 40%. Bond gains and losses are to be allocated to each company. During 2020, Skokie earned a net income of $80,000 and paid dividends of $20,000. Market rates (Yield) for these bonds was 8.45% at issue date January 1, 2018 for Pebble Beach. Market rate (Yield) for Skokie at investment date January 1, 2020 was 10.45% REQU[RED: a) Calculate the amount of the gain or loss that will appear as a separate item on the 2020 consolidated income statement, as a result of the bond transaction. (2 marks) b) Calculate the after-tax gain or loss to Skokie on the purchase of the Bonds. (2 marks) c) Calculate the after-tax gain or loss to Pebble Beach on the purchase of the Bonds. (2 marks) (1) What amount of after-tax interest expense (if any) would have to be eliminated in 2020 as a result of the purchase of the Bonds? (3 marks) e) Calculate the non-controlling interest's share of Skokie's income for the year-ended December 31, 2020. (3 marks) 1') What value would be shown on Pebble Beach's December 31, 2020 Consolidated Balance Sheet for the Bond issue

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