Use the following information to answer the question(s) below.

Pascalian Company owns a 90% interest in Sapp Company. On January 1, 2013, Pascalian had $300,000, 6% bonds outstanding with an unamortized premium of $9,000. The bonds mature on December 31, 2017. Sapp acquired one-third of Pascalian's bonds in the open market for $97,000 on January 1, 2013. Both companies use straight-line amortization of bond discounts/premiums. Interest is paid on December 31. On December 31, 2013, the books of the two affiliates held the following balances:
$$\begin{array} { l l }
6 \% \text { bonds payable } & \$ 300,000 \
\text { Premium on bonds } & 7,200 \
\text { Interest expense } & 16,200
\end{array}$$ $$\begin{array} { l l }
\text { Investment in Pascalian bonds } & \$ 97,600 \
\text { Interst income } & 6,600
\end{array}$$
-The gain from the bond purchase that appeared on the December 31,2013 consolidated income statement was

Question

Use the following information to answer the question(s) below.

Pascalian Company owns a 90% interest in Sapp Company. On January 1, 2013, Pascalian had $300,000, 6% bonds outstanding with an unamortized premium of $9,000. The bonds mature on December 31, 2017. Sapp acquired one-third of Pascalian's bonds in the open market for $97,000 on January 1, 2013. Both companies use straight-line amortization of bond discounts/premiums. Interest is paid on December 31. On December 31, 2013, the books of the two affiliates held the following balances:
$$\begin{array} { l l } 
6 \% \text { bonds payable } & \$ 300,000 \
\text { Premium on bonds } & 7,200 \
\text { Interest expense } & 16,200
\end{array}$$ $$\begin{array} { l l } 
\text { Investment in Pascalian bonds } & \$ 97,600 \
\text { Interst income } & 6,600
\end{array}$$
-The gain from the bond purchase that appeared on the December 31,2013 consolidated income statement was

Quizplus · Accepted Answer

The Answer of Use the following information to answer the question(s) below.

Pascalian Company owns a 90% interest in Sapp Company. On January 1, 2013, Pascalian had $300,000, 6% bonds outstanding with an unamortized premium of $9,000. The bonds mature on December 31, 2017. Sapp acquired one-third of Pascalian's bonds in the open market for $97,000 on January 1, 2013. Both companies use straight-line amortization of bond discounts/premiums. Interest is paid on December 31. On December 31, 2013, the books of the two affiliates held the following balances:
$$\begin{array} { l l } 
6 \% \text { bonds payable } & \$ 300,000 \
\text { Premium on bonds } & 7,200 \
\text { Interest expense } & 16,200
\end{array}$$ $$\begin{array} { l l } 
\text { Investment in Pascalian bonds } & \$ 97,600 \
\text { Interst income } & 6,600
\end{array}$$
-The gain from the bond purchase that appeared on the December 31,2013 consolidated income statement was