Use the Following Information to Answer the Question(s) Below

question 33

Multiple Choice

Use the following information to answer the question(s) below.

Plenty Corporation issued six thousand, $1,000 par, 6% bonds on January 1, 2012, at par. Interest is paid on January 1 and July 1 of each year; the bonds mature on January 1, 2017. On January 2, 2014, Scrawn Corporation, a 75%-owned subsidiary of Plenty, purchased 3,000 of the bonds on the open market at 102.50. Plenty's separate net income for 2014 included the annual interest expense for all 3,000 bonds. Scrawn's separate net income for 2014 was $400,000, which included the bond interest received on July 1 as well as the accrual of bond interest revenue earned on December 31. Both companies use straight-line amortization of bond discounts/premiums.

-Using the original information,the elimination entries on the consolidation working papers prepared on December 31,2014 included at least

• A)debit to Bond Interest Expense for $360,000.
• B)credit to Bond Interest Expense for $180,000 and a debit to Bond Interest Payable for $90,000.
• C)credit to Bond Interest Receivable for $180,000.
• D)debit to Bond Interest Revenue for $360,000.

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Definitions:

Coordination

The ability to move different parts of the body smoothly and efficiently together.

Proprioceptive Neuromuscular Facilitation

A set of stretching techniques used to enhance both active and passive range of motion with the ultimate goal of improving functional movement.

Protein Nitrogen Fat

Components of nutritional science, focusing on proteins and fats as essential macronutrients and nitrogen as a fundamental element in protein structure.

Flexibility Status

A description of the range of motion available in a joint or group of joints, indicative of the malleability or elasticity of the muscles and ligaments.