Fargus Corporation Owned 51% of the Voting Common Stock of Sanatee

question 113

Essay

Fargus Corporation owned 51% of the voting common stock of Sanatee, Inc. The parent's interest was acquired several years ago on the date that the subsidiary was formed. Consequently, no goodwill or other allocation was recorded in connection with the acquisition price. On January 1, 2020, Sanatee sold $1,400,000 in ten-year bonds to the public at 108. The bonds pay a 10% interest rate every December 31. Fargus acquired 40% of these bonds on January 1, 2022, for 95% of the face value. Both companies utilized the straight-line method of amortization.What consolidation entry would be recorded in connection with these intra-entity bonds on December 31, 2023?

Recognize the importance of ethical corporate considerations beyond profit.

Understand the role of personal decision-making in ethical dilemmas and development.

Understand the concept of Sapir-Whorf hypothesis and its implications on linguistic relativity.

Identify and describe the characteristics of tonal languages.

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Definitions:

MR

Short for Marginal Revenue, which is the additional income earned by selling one more unit of a product or service.

ATC

Average Total Cost, which is the total cost of production (fixed plus variable costs) divided by the quantity of output produced.

ATC

Average Total Cost, which is the total cost of production divided by the quantity of output produced.

Price Charged

The amount of money demanded for a product or service in the market.