Pachelor Corporation Owns 70% of the Outstanding Stock of Stabb

question 44

Essay

Pachelor Corporation owns 70% of the outstanding stock of Stabb Company.On January 1,2013,Stabb issued $1,000,000 in 7% bonds that matured on January 1,2018.At the time of issuance,the bonds were sold at a discount of $125,000.At January 2,2015,Pachelor purchased the bonds for $1,400,000,and constructively retired the debt.Interest is paid annually on January 1.Straight-line amortization is used by both companies.
Required:
1.Calculate the gain or loss that the consolidated entity incurred to retire the debt.
2.Prepare eliminating/adjusting entries for the consolidating work papers for the year ended
December 31,2015.

Recognize the characteristics of different business strategies (stability, growth, differentiation, cost leadership).

Understand the process and components of SWOT analysis.

Identify different growth strategies including mergers, acquisitions, and global expansion.

Comprehend the strategies for developing competitive advantages.

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Definitions:

First-generation Immigrants

Individuals who have moved from their country of birth to reside in a different country, becoming the first in their family to do so.

Feel "American"

The subjective sense of identity or belonging to the United States, often influenced by cultural assimilation or personal identification with American values and norms.

Social Networks

Platforms or systems that enable individuals to connect, interact, and share information with others online.

Moratorium-achievement

A term in identity development referring to a period of exploration followed by a commitment to a certain identity or role.