Reference no: EM131722698
Problem - On 1/1/1999 Batman Co. purchased all of the outstanding shares of Superman Company at book value.
Superman Company doesn't pay dividends and Batman Company uses the initial value method for its investment in Superman.
On 1/1/2013 Superman Company issued $1,000,000 8% 30 year bonds for $940,000. Superman uses straight line amortization of the discount. These bonds pay interest annually on January 1st.
On 1/1/2015 Batman purchased 1/2/ of the Superman Company bonds in the market place for $472,000. Batman also uses straight line amortization for its investment in bonds.
REQUIRED
A) Make the journal entry superman made when it sold the bonds
B) Make the entry superman makes on December 31 for accruing interest
C) Make the entry batman makes when it buys the bonds
D) Make the entry batman makes on December 31 to accure interest
E) Make the worksheet entries needed 12/31/15 connected with the bonds
F) Make the worksheet entries needed 12/31/16 connected with the bonds
G) In 2015 batman reported unconsolidated income of $333,000 and superman reported income of $90,000 what was consolidated income in 2015?
H) In 2016 batman reported unconsolidated income of $333,000 and superman reported income of $90,000 what was consolidated income in 2016?
I) On 12/31/14 batman had unconsolidated retained earnings of $5,400,000 and consolidated retained Earnings of $7,500,000. What was batman's unconsolidated and consolidated retained earnings on
1) 12/31/15
2) 12/31/16