What the amount on the consolidated balance sheet relative

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Problem 1: Company S is a 100% owned subsidiary of Company P. On January 1, 2020, Company S has $100,000 of 8% face rate bonds outstanding, which were issued at face value. The bonds had 5 years to maturity on January 1, 2020. Premium or discounts are amortized on a straight-line basis. On that date, Company P purchased the bonds for $98,000. The amount on the consolidated balance sheet relative to the debt is:

A. The bonds do not appear

B. Bonds payable, $100,000

C. Bonds payable, $100,000, discount, $1,600

D. Bonds payable, $100,000, discount, $2,000

Reference no: EM132817759

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