Question
Stang Corporation issued to Bradley Company $520,000 par value, 10-year bonds with a coupon rate of 12 percent on January 1, 20X5, at 102. The
Stang Corporation issued to Bradley Company $520,000 par value, 10-year bonds with a coupon rate of 12 percent on January 1, 20X5, at 102. The bonds pay interest semiannually on July 1 and January 1. On January 1, 20X8, Purple Corporation purchased $130,000 of the bonds from Bradley for $134,000. Purple owns 70 percent of the voting common shares of Stang and prepares consolidated financial statements. Required: a. Prepare the worksheet consolidation entry or entries needed to remove the effects of the intercorporate bond ownership in preparing consolidated financial statements for 20X8. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations. Round your final answers to nearest whole dollar.)
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