Light Corporation owns 80 percent of Sound Company's voting shares. On January 1, 20X7, Sound sold bonds with a par value of $300,000 at 95. Light purchased two thirds of the bonds; the remainder was sold to nonaffiliates. The bonds mature in ten years and pay an annual interest rate of 6 percent. Interest is paid semiannually on January 1 and July 1.
-Based on the information given above,what amount of interest receivable will be recorded by Light Corporation on December 31,20X8,in its separate financial statements?

Question

Quizplus · Accepted Answer

The Answer of Light Corporation owns 80 percent of Sound Company's voting shares. On January 1, 20X7, Sound sold bonds with a par value of $300,000 at 95. Light purchased two thirds of the bonds; the remainder was sold to nonaffiliates. The bonds mature in ten years and pay an annual interest rate of 6 percent. Interest is paid semiannually on January 1 and July 1.
-Based on the information given above,what amount of interest receivable will be recorded by Light Corporation on December 31,20X8,in its separate financial statements?

Light Corporation Owns 80 Percent of Sound Company's Voting Shares