What would be the amount of bonds payable

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Question - Parent owns 100% of Sub. As of January 1, 2020, Sub had outstanding par value bonds in the amount of $1,000,000. Annual interest on these bonds was in the amount of7%. There was a bond discount associated with this issuing where the unamortized balance as of January 1, 2020 was $40,000. These bonds will mature on January 1, 2030.

On January 1, 2020 Parent acquired 30% of these outstanding bonds at their par value (i.e. $300,000).

What would be the amount of Bonds Payable that would appear on the consolidated balance sheet as of December 31, 2020?

Reference no: EM133008674

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