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

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Definitions:

Qualitative Studies

Research methods that focus on exploring, understanding, and interpreting the meaning and behavior of humans within their social context.

Ethnographies

involve the systematic study and detailed description of peoples and cultures with a focus on customs, habits, and mutual differences.

Fixed Coding

Assigning units of information to preassigned categories.

Flexible Coding

Coding that allows new categories of data to emerge rather than using only preconceived categories.