What amount should appear on the consolidated balance sheet

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Question - Sandler Company is a wholly owned subsidiary of Portnoy Company. On January 1, 2009, Sandler has $100,000 of 8% bonds outstanding. These bonds were issued at face value and had five years to maturity as of January 1, 2009. Both Sandler and Portnoy amortize any premium or discount using the straight-line method. On January 1, 2009, Portnoy bought Sandler's bonds for $98,000. What amount(s) that should appear on the consolidated balance sheet of Portnoy and Sandler relative to these bonds?

bonds payable $100,000.

bonds payable $100,000, discount $1,600.

bonds payable $100,000, discount $2,000.

the bonds do not appear.

Reference no: EM132481936

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