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:

Fund-raising

The process of gathering monetary donations or other resources, often for non-profit organizations, through a variety of activities and appeals.

Fund-raising Activity

The act or process of gathering financial support for a cause, project, or organization, often through donations or events.

Fund-raising Process

The systematic approach to soliciting and gathering voluntary contributions of money or resources.

Nonprofit Organization

An organization that operates for a public or social benefit, rather than to generate profit for owners or shareholders.