Company S Is a 100%-Owned Subsidiary of Company P

question 47

Multiple Choice

Company S is a 100%-owned subsidiary of Company P. On January 1, 20X3, Company S has $100,000 of 8% face rate bonds outstanding. The bonds had 5 years to maturity on January 1, 20X3, and had an unamortized discount of $5,000. On that date, Company P purchased the bonds for $99,000. The net adjustment needed to consolidate retained earnings on December 31, 20X3 is ____.

• A)$(4,000)
• B)$(3,200)
• C)$(800)
• D)$0

---

Definitions:

Ideology

A framework of beliefs and values, particularly one shaping the foundation of political or economic theories and policies.

Ideological Analysis

The study of the underlying beliefs, values, and principles within cultural texts and media that shape societal norms and power structures.

Broader Ways

Expanding or diversifying the manner in which something is approached, interpreted, or understood, contributing to a more encompassing or comprehensive perspective.

Media Text

Any written, visual, or auditory piece of material intended to convey information or messages via media platforms.