Saturn Corporation issued $300,000 par value 10-year bonds at 107 on January 1,20X3,which Star Corporation purchased.On July 1,20X7,Pluto Corporation purchased $120,000 face value of Saturn bonds from Star.The bonds pay 12 percent interest annually on December 31.The preparation of consolidated financial statements for Saturn and Pluto at December 31,20X9,required the following consolidation entry:
-Based on the information given above,what amount of gain or loss on bond retirement is included in the 20X7 consolidated income statement?
Definitions:
Initial Direct Costs
The expenditures that a company can directly attribute to acquiring a new lease or originating a loan.
Operating Lease
A lease agreement that allows for the use of an asset but does not convey rights similar to ownership of the asset.
Prepaid Asset
Costs that are paid for upfront and listed as assets prior to their utilization or consumption.
Interest Rate Implicit
The interest rate in a lease that, when applied to the lease payments, discounts them to equal the fair value of the leased asset.
Q13: Pratt Corporation acquired 90 percent of Splatt
Q16: Pizza Corporation acquired 100 percent of Slice
Q19: Of the two main methods of withholding,only
Q19: If an employer pays unemployment taxes to
Q25: Based on the preceding information,what amount of
Q37: All of the following are examples of
Q44: To curb the practice of employees filing
Q48: When one company purchases the debt of
Q50: Lidge Company of Texas (TX)is classified as
Q54: Based on the preceding information,what is the