Saturn Corporation Issued $300,000 Par Value 10-Year Bonds at 107

question 33

Multiple Choice

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,if 20X9 consolidated net income of $50,000 would have been reported without the consolidation entry provided,what amount will actually be reported?

• A)$47,900
• B)$48,200
• C)$49,400
• D)$48,800

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Definitions:

Motivators

Factors or incentives that encourage a person to act or work harder.

Achievement Motivation

A desire to accomplish goals and excel in tasks, driving individuals to succeed.

Very High Goals

Goals set by individuals or organizations that are significantly challenging and ambitious, often aiming to achieve exceptional outcomes.

Learned Needs Model

A theory that suggests individuals acquire their needs based on their life experiences and these needs drive their behavior towards achieving certain goals.