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QUESTION 7 Pancake Corporation owns 85 percent of Syrup Corporation's voting shares. On January 1, 20X8, Pancake Corporation sold $200,000 par value 8 percent bonds
QUESTION 7
- Pancake Corporation owns 85 percent of Syrup Corporation's voting shares. On January 1, 20X8, Pancake Corporation sold $200,000 par value 8 percent bonds to Syrup when the market interest rate was 5 percent. The bonds mature in 10 years and pay interest semiannually on June 30 and Dec 31.
- Based on the information given above, in the preparation of the 20X8 consolidated financial statements, premium on bonds payable will be:
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Jill E. Mitchell
14th Edition
1119707110, 978-1119707110
