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

question 33

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, 2022?

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Definitions:

HR Release

A document or announcement by the Human Resources department that typically communicates decisions, policy updates, or information relevant to employees.

Employee Information

Consists of personal and employment-related data about an employee, such as contact details, employment history, qualifications, and performance records.

Outside Persons

Individuals who are not employees or directly associated with an organization but may interact with it or have an interest in its activities.

Employee Health Records

Documents that contain information about an employee's health history, including injuries, illnesses, and medical conditions, often for compliance and safety reasons.