Spice Company Issued $200,000 of 10 Percent First Mortgage Bonds

question 6

Multiple Choice

Spice Company issued $200,000 of 10 percent first mortgage bonds on January 1,20X4,at 105.The bonds mature in 10 years and pay interest semiannually on January 1 and July 1.Pumpkin Corporation purchased $140,000 of Spice's bonds from the original purchaser on December 31,20X8,for $125,000.Pumpkin owns 75 percent of Spice's voting common stock.
-Based on the information given above,what amount of interest income will be eliminated in the preparation of the 20X9 consolidated financial statements?

• A)$17,000
• B)$13,300
• C)$18,500
• D)$22,200

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Definitions:

Frequency of Masturbation

refers to how often an individual engages in masturbation, a sexual activity where people stimulate their own genitals for sexual pleasure.

Restrict Sex

Limitations or controls placed on sexual activities or expressions.

Early Stages

The initial phases or periods in the development or progress of something.

Separate Love and Sex

The conceptual differentiation between romantic love and sexual desire, acknowledging that they can exist both independently and together in human relationships.