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:

Synaptic Cleft

The tiny gap between neurons at a synapse, through which neurotransmitters are released to transmit nerve impulses from one neuron to another.

Axon Terminal

The endpoint of a neuron, where neurotransmitters are released to transmit signals to other neurons or muscle cells.

Vesicles

Small fluid-filled sacs within the body or cells used in the transport of molecules.

Neurotransmitters

Substances in the brain that facilitate communication between neurons, playing a crucial role in regulating mood, cognition, and behavior.