Peter Corporation Owns a 70% Interest in Sundown Corporation Acquired

question 21

Essay

Peter Corporation owns a 70% interest in Sundown Corporation acquired several years ago at a price equal to book value and fair value.On December 31,2013,Sundown had $300,000 par of 6% bonds outstanding with an unamortized premium of $30,000.The bonds mature in five years and pay interest on January 1 and July 1.On January 2,2014,Peter acquired one-third of Sundown's bonds for $117,000.Peter and Sundown use straight-line amortization.Sundown reports net income of $250,000 for 2014.Peter uses the equity method to account for the investment.
Required:
1.Calculate Peter's income from Sundown for 2014.
2.Calculate the noncontrolling interest share for 2014.

Identify and understand different types of corporate actions like stock splits and dividends.

Know the rights and obligations associated with purchasing stocks, including voting and dividends.

Understand stock purchase mechanics, including buying on margin and commissions.

Grasp the concept of investment strategies such as dollar-cost averaging.

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Definitions:

Self-Presentational Motivation

The drive to control or influence the impressions others have of oneself.

Cross-Cultural Research

The scientific study of human behavior and mental processes, including their variability and invariance, under diverse cultural conditions.

Social Anxiety

A condition characterized by intense fear or anxiety in one or more social situations, leading to significant distress and impaired ability to function in daily life.

Helplessness

A state in which an individual feels unable to control events affecting them, leading to a lack of motivation and depression.