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

question 70

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, 2024?

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Definitions:

Serum Calcium

The measurement of calcium levels in the blood serum, critical for bone health and various bodily functions.

Phosphate Levels

The concentration of phosphate ions in the blood, which are important for energy storage and transfer, bone formation, and many other physiological processes.

Potassium Levels

Refer to the concentration of potassium in the blood, essential for muscle function, nerve function, and fluid balance in the body.

Chvostek Sign

A clinical sign where facial muscles twitch upon tapping the facial nerve, indicative of conditions like hypocalcemia.