Granite Company issued $200,000 of 10 percent first mortgage bonds on January 1,2004,at 105.The bonds mature in 10 years and pay interest semiannually on January 1 and July 1.Mortar Corporation purchased $140,000 of Granite's bonds from the original purchaser on December 31,2008,for $125,000.Mortar owns 75 percent of Granite's voting common stock.
-Based on the information given above,what amount of premium on bonds payable will be eliminated in the preparation of the 2009 consolidated financial statements?

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The Answer of Granite Company issued $200,000 of 10 percent first mortgage bonds on January 1,2004,at 105.The bonds mature in 10 years and pay interest semiannually on January 1 and July 1.Mortar Corporation purchased $140,000 of Granite's bonds from the original purchaser on December 31,2008,for $125,000.Mortar owns 75 percent of Granite's voting common stock.
-Based on the information given above,what amount of premium on bonds payable will be eliminated in the preparation of the 2009 consolidated financial statements?

Granite Company Issued $200,000 of 10 Percent First Mortgage Bonds