User Account

All Pages

Consolidated income statement problem

Assignment Help Accounting Basics
Reference no: EM13152014

Subsidiary Company issued $200,000 of 8%, 5-year bonds on January 1, 20X6. The discount on issuance was $12,000. Bond interest is paid annually on December 31. On December 31, 20X8, Parent Company purchased one-half of the outstanding bonds for $96,000. Both companies use the straight-line method of amortization. How much interest expense will appear on the December 31, 20X8, consolidated income statement?

a. $18,400

b. $16,000

c. $9,200

d. $8,000

Reference no: EM13152014

Questions Cloud

Penetration rates customer : Do not have large enough share of customer wallets (they do not spend as much with Moore as the company would have liked) Penetration rates Customer Issues! Why is the churn rate higher than industry average? Why customers defect? Where do they go wh..
How has globalization of production affected our ability : Are these kinds of policies easy to implement in practice? How has globalization of production affected our ability to control pollution?
Afn equation to forecast additional funds : The after-tax profit margin is forecasted to be 5 percent, and the forecasted retention ratio is 30 percent. Use the AFN equation to forecast Carter's additional funds needed for the coming year.
What are the most abundant proteins : Use your textbook to determine: What are the most abundant proteins in the sacromeres of vertebrae muscle tissue and what are their functions?
Consolidated income statement problem : On December 31, 20X8, Parent Company purchased one-half of the outstanding bonds for $96,000. Both companies use the straight-line method of amortization. How much interest expense will appear on the December 31, 20X8, consolidated income statemen..
How a company could benefit from either centralization : Evaluate and compare the "vertical restraints" of the two industries / sectors for the purposes of assessing the consequences of these provisions for strategic decision making.
Find kp for the reaction : The standard free energy of formation of gaseous hydrogen iodide is 1.30 kJ/mol at 25°C. Find Kp for the reaction 2HI(g) -> H2(g) + I2(s) at this temperature.
Large part on mintzberg : Based in large part on Mintzberg, Lampel, Quinn, and Ghoshal, The Strategy Process, Concepts, Contexts, Cases, 4th ed., Prentice-Hall (2003). Of taste, design, production and distribution.
What percentage error would be introduced of liquid : What percentage error would be introduced in a 35.0 mL sample of liquid if the air bubble comes out of the tip of the buret while the liquid sample is being transferred?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Role of financial institutions or derivative

Provide an example of financial institutions, and state what role they play in securities markets.

  Compute the profit for the consignor for the unit sold

(Consignment Computations) On May 3, 2012, Eisler Company consined 80 freezers, costing $500 each, to Remmers Company. The cost of shipping the freezers amount to $840 and was paid by Eisler Company.

  Issuance of bonds and payment of interest

On March 1, Year 1, a firm issues $475,000 bonds at par value plus accrued interest. The stated rate on the bonds was 12% and the bonds pay interest semi-annually on June 30 and December 31. Prepare the entries necessary to record

  What general business factors should be considered

What general business factors should be considered when choosing between the branch and subsidiary forms of doing business in the United States?

  Determining firm expected rate of return

Dothan Inc.'s stock has a 25% chance of producing a 17% return, a 50% chance of producing a 12% return, and a 25% chance of producing a -18% return. What is the firm's expected rate of return?

  What is the average wait time for production

Vases take an average of 15 minutes to manufacture, and the machine that produces the vases has an annual capacity to run 4,000 hours. What is the average wait time for production?

  Statement regarding transactions

According to double-entry accounting, which of the following is a correct statement regarding transactions?

  Determining total budgeted cost of direct labor

The production of each TV set requires 1.5 direct labor hours. The average cost of each direct labor hour is $10.50. If scheduled production for May is 2,000 TVs, what will be the total budgeted cost of direct labor?

  Compute the anticipated break-even sales

For the current year ending April 30, Hal Company expects fixed costs of $60,000, a unit variable cost of $70, and a unit selling price of $105.(a) Compute the anticipated break-even sales (units).(b) Compute the sales (units) required to realize ..

  Inventory and beginning balance

Ponderosa acquired 100% control of Sumac on January 1, 2009. The purchase differential included $30,000 attributable to undervaluation of Sumac's inventory. Both Ponderosa and Sumac account for inventory using LIFO. Sumac's December 31, 2009 inven..

  Identify and discuss the transfer tax implications

Willie purchased a whole-life insurance policy on his brother, Benny. under the policy, the insurance company will pay the named beneficiary $100,000 upon the death of the insured, benny.

  Significant fraud involving diverting of company

You have been employed as an entry- level management accountant for a little under a year. You suspect that your immediate supervisor is involved in a significant fraud involving diverting of company assets to personal use.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd