Master Corporation owns 85 percent of Servant Corporation's voting shares.On January 1,2008,Master Corporation sold $200,000 par value 8 percent bonds to Servant for $245,000.The bonds mature in 10 years and pay interest semiannually on January 1 and July 1.
-Based on the information given above,what amount of investment in bonds will be eliminated in the preparation of the 2008 consolidated financial statements?
A) $240,500
B) $200,000
C) $245,000
D) $211,500
Correct Answer:
Verified
Q22: Granite Company issued $200,000 of 10 percent
Q22: Granite Company issued $200,000 of 10 percent
Q22: Senior Corporation acquired 80 percent of Junior
Q23: Dundee Company issued $1,000,000 par value 10-year
Q23: Senior Corporation acquired 80 percent of Junior
Q24: Granite Company issued $200,000 of 10 percent
Q25: On January 1,2007,Gild Company acquired 60 percent
Q26: A subsidiary issues bonds.The parent can then
Q31: Granite Company issued $200,000 of 10 percent
Q33: Granite Company issued $200,000 of 10 percent
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents