Company P owns 80% of Company S. On January 1, 20X3 Company S has outstanding 6%

Question

Company P owns 80% of Company S. On January 1, 20X3 Company S has outstanding 6% bonds with a face value of $200,000 and an unamortized discount of $3,000, which is being amortized on a straight-line basis over a remaining term of 10 years. On January 1, 20X3, Company P purchased all the bonds for $205,000. The premium also is amortized on a straight-line basis. The net impact of the purchase on the noncontrolling interest as of December 31, 20X3, is _____. a. $(8,000) c. $(1,440) b. $(1,600) d. $(1,200) How do you figure this out?

Explanation / Answer

$(1,600)

plz refer

http://speedthrucollege.blogspot.in/

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.