Moon Corporation issued $300,000 par value 10-year bonds at 107 on January 1,2003,which Star Corporation purchased.On July 1,2007,Sun Corporation purchased $120,000 of Moon bonds from Star.The bonds pay 12 percent interest annually on December 31.The preparation of consolidated financial statements for Moon and Sun at December 31,2009,required the following eliminating entry:

-Based on the information given above,if 2009 consolidated net income of $50,000 would have been reported without the eliminating entry provided,what amount will actually be reported?

Question

Moon Corporation issued $300,000 par value 10-year bonds at 107 on January 1,2003,which Star Corporation purchased.On July 1,2007,Sun Corporation purchased $120,000 of Moon bonds from Star.The bonds pay 12 percent interest annually on December 31.The preparation of consolidated financial statements for Moon and Sun at December 31,2009,required the following eliminating entry:
 
-Based on the information given above,if 2009 consolidated net income of $50,000 would have been reported without the eliminating entry provided,what amount will actually be reported?

Quizplus · Accepted Answer

The Answer of Moon Corporation issued $300,000 par value 10-year bonds at 107 on January 1,2003,which Star Corporation purchased.On July 1,2007,Sun Corporation purchased $120,000 of Moon bonds from Star.The bonds pay 12 percent interest annually on December 31.The preparation of consolidated financial statements for Moon and Sun at December 31,2009,required the following eliminating entry:
 
-Based on the information given above,if 2009 consolidated net income of $50,000 would have been reported without the eliminating entry provided,what amount will actually be reported?

Moon Corporation Issued $300,000 Par Value 10-Year Bonds at 107