Use the Following Information to Answer Questions

question 26

Multiple Choice

Use the following information to answer Questions
Pallet Corporation owns 90% of the outstanding common stock of Stealth Company.On January 1, 2011, Stealth Company issued $500,000, 12%, ten-year bonds.
On January 1, 2013, Pallet Corporation paid $412,000 for Stealth Company bonds with a par value of $400,000 and a carrying value of $393,600.Both companies use the straight-line method to amortize bond premiums and discounts.Pallet Corporation accounts for the investment using the cost method of accounting.
-The total gain or loss on the constructive retirement of the debt to be reported in the 2013 consolidated income statement is

• A)$12,000 loss.
• B)$12,000 gain.
• C)$18,400 loss.
• D)$18,400 gain.
• E)$6,400 loss.

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Past Work Records

Documentation or evidence of an individual's previous employment experiences, achievements, and performance.

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Consists of assessments used by employers to evaluate potential or current employees' abilities, skills, personality, and fit for a job.

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