Pan Corporation owns 65 percent of Sauce Corporation's voting shares.On January 1,20X3,Pan Corporation sold $300,000 par value 7 percent bonds to Sauce when the market interest rate was 4 percent.The bonds mature in 15 years and pay interest semiannually on June 30 and December 31.
-Based on the information given above,in the preparation of the 20X3 consolidated financial statements,premium on bonds payable will be:
A) credited for $95,766 in the consolidation entries.
B) debited for $95,766 in the consolidation entries.
C) credited for $100,784 in the consolidation entries.
D) debited for $100,784 in the consolidation entries.
Correct Answer:
Verified
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