Parent Company Owns an 80% Interest in Subsidiary Company

question 6

Multiple Choice

Parent Company owns an 80% interest in Subsidiary Company.Subsidiary Company has outstanding $200,000 of 8% bonds that were sold at face value and have 5 years to mature from the balance sheet date.Parent Company owns 75% of the bonds and has a remaining unamortized book value of $145,000.Subsidiary Company bonds will be presented on the consolidated balance sheet as

• A)​bonds payable, $55,000
• B)​bonds payable, $50,000
• C)​bonds payable, $ 5,000
• D)​bonds payable, $ 40,000

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Definitions:

Structural Functionalist

A sociological perspective that views society as a complex system whose parts work together to promote solidarity and stability.

Sick Role

A concept in medical sociology that describes the social expectations of how one should behave when ill, including exemption from normal social roles and obligations.

Talcott Parsons

An American sociologist known for developing the theory of action and for his role in the development of modern sociology.

Deprivation Amplification

The process by which disadvantaged groups are more likely to experience compounding effects of deprivation, leading to greater inequality.