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Stallion Corporation sold $100,000 par value, 10-year first mortgage bonds to Pony Corporation on January 1, 20X5. The bonds, which bear a nominal interest
Stallion Corporation sold $100,000 par value, 10-year first mortgage bonds to Pony Corporation on January 1, 20X5. The bonds, which bear a nominal interest rate of 12 percent, pay interest semiannually on January 1 and July 1. The current market interest rate is 11 percent. Pony Corporation owns 65 percent of the voting stock of Stallion Corporation, and consolidated statements are prepared on December 31, 207. Required: a. What was the original purchase price of the bonds to Pony Corporation? (Round your answer to 2 decimal places.) Original purchase price b. What is the balance in Pony's bond investment account on December 31, 20X7? (Do not round your intermediate calculations. Round your final answer to nearest whole dollar.) Bond investment account
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