What would be the pre-tax gain or loss to the consolidated

Assignment Help Financial Accounting
Reference no: EM132554707

Parent owns 75% of Sub. On the open market parent buy all bonds of the Sub for $900,000. The par value of these bonds on ledger for Sub is $800,000. Interest is paid annually at 7%. On the books of the Sub there is an unamortized discount of $60,000. The tax rate is 35%

Question 1: What would be the pre-tax gain or loss to the consolidated entity on the intercompany sale of the bonds?

Reference no: EM132554707

Questions Cloud

State children health insurance program : From the first e-Activity, specify whether your state follows the private insurance model or the Medicaid model for its CHIP.
Analyzing profitability : In? 2016, the Allen Corporation had sales of $63 ?million, total assets of $44 ?million, and total liabilities of $21 million. The interest rate on the? company
Healthcare quality and liability and quality : Examine two (2) well-known healthcare quality organizations that have taken two to three (2-3) measures to improve quality within the organizations themselves.
What will be the level of expected eps : Your company doesn't face any taxes and has $265 million in assets, currently financed entirely with equity. Equity is worth $9.5 per share, and book value
What would be the pre-tax gain or loss to the consolidated : Parent owns 75% of Sub. What would be the pre-tax gain or loss to the consolidated entity on the intercompany sale of the bonds?
Possible values of ebit and associated probabilities : Also, let's assume that the firm's expected values for EBIT depend upon which state of the economy occurs this year, with the possible values of EBIT and their
Regression to estimate a trend : What would be the forecast for next year's sales using regression to estimate a trend?
Draft an annotated bibliography : Carefully review all the information you have accumulated on your topic (CRM)as well as the feedback you have received.
Record the journal entries for the month of october : Record the journal entries for the month of October. (If no entry is required for a transaction/event, select "No journal entry required"

Reviews

Write a Review

Financial Accounting Questions & Answers

  What amount related to the bonds would baddour report

On January 1, 2016, Baddour, Inc., issued 12% bonds with a face amount of $167 million. The bonds were priced at $146.3 million to yield 14%. Interest is paid semiannually on June 30 and December 31. Baddour’s fiscal year ends September 30. What amou..

  Use the sustainable growth rate concept to analyze bubars

On average other building companies pay about one quater of thier earnings in dividends, earn about 6 cents on the sales dollar, carry assets worth about 6 months of sales, and finance one third of thier assets with debt. use the sustainable growth r..

  Can a company have a negative financing period

Can a company have a "negative" financing period? Why is a physical inventory needed under both the periodic and perpetual inventory systems?

  Distribution of income or loss to partners

What are the income or loss shares of the annual partners if the partnership income is $87,000 - Distribution of Income or loss to partners

  Company''s book balance of cash

Prepare the journal entries necessary to bring the company's book balance of cash into conformity with the reconciled cash balance as of July 31. 2005.

  Ethical considerations in making subjective valuations

What are the ethical considerations in making subjective valuations of complex and exotic investments and such funds help assure investors that there will be adequate cash to pay the bonds at their maturity date.

  Used for the FUTA tax rate for employers

During 2015, Jeff Smallwood worked for two different employers. Until May, he worked for Rowland Construction Company in Ames, Iowa, and earned $22,000.

  What would be the presentation currency of magnolia ltd

Magnolia is a multinational Australian company,Identify the functional currency of Magnolia Ltd. What would be the presentation currency of Magnolia Ltd?

  Determine cherry corporations deduction for organization

Lupe, a cash basis taxpayer, owns 55% of the stock of Jasper Corporation, a calendar year accrual basis C Corporation. - Determine Cherry Corporation's deduction for organizational expenditures for 2015.

  Bond investment transactions were completed

The following bond investment transactions were completed during 2014 by starks company: Jan 31: purchased 75, $1,000 government bonds at 100 plus 30 days' accrued interest. The bonds pay 6% annual interest on July 1 and January 1.

  What is the annual dividend on the preferred stock

Day Inc. has 4,363 shares of 7%, $100 par value, cumulative preferred stock and 80,023 shares of $1 par value common stock outstanding at December 31, 2014. What is the annual dividend on the preferred stock?

  Transaction processing-record each transaction separate line

Basic transaction processing. On November 1 of the current year, Richard Simmons established a sole proprietorship. The following transactions occurred during the month: Record each transaction on a separate line. After all transactions have been rec..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd