Solution-What would pre-tax gain or loss to the

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

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

Required - What would be the pre-tax gain or loss to the consolidated entity on the intracompany sale of the bond?

Reference no: EM132567761

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

Reference no: EM132567761

Reference no: EM132567761

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