Make the journal entries for controlling interest share

Reference no: EM132704847

Subsidiary purchases parent bonds

P company acquired an 80% interest in S company on Jan. 1. 2011, for $800,000 in excess of book value and fair value. On Jan. 1. 2014, P had $2,000,000 par, 8% bonds outstanding with an $80,000 unamortized discount. On Jan. 2. 2014, S purchased $800,000 par of Pat's bonds at par. The bonds mature on Jan 1, 2018, and pay interest on Jan 1 and Jul 1. P's separate income, not including investment income, for 2014, is $1,600,000 and S's reported net income is $1,000,000.

Problem 1: Make the Journal Entries.

Income calculation
Controlling interest share of consolidated net income for P and S for 2014
NCIS for 2014

Reference no: EM132704847

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