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

question 34

Multiple Choice

Use the following information to answer the question(s) below.
Pfadt Inc.had $600,000 par of 8% bonds payable outstanding on January 1,2011 due January 1,2015 with an unamortized discount of $12,000.Senat is a 90%-owned subsidiary of Pfadt.On January 2,2011,Senat Corporation purchased $150,000 par value of Pfadt's outstanding bonds for $152,000.The bonds have interest payment dates of January 1 and July 1.Straight-line amortization is used.
-With respect to the bond purchase,the consolidated income statement of Pfadt Corporation and Subsidiary for 2011 showed a gain or loss of

• A)$ 4,500.
• B)$ 5,000.
• C)$10,800.
• D)$12,000.

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Definitions:

Groupthink

is a psychological phenomenon that occurs within a group of people, where the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Groupthink

A psychological phenomenon occurring within a group of people, where the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Discrediting Information

Information intended to undermine or reduce the credibility of a person, concept, or theory.

Feelings of Invulnerability

A psychological state where an individual perceives themselves as impervious to harm or danger, often leading to riskier behaviors.