Paper Corporation Holds 80 Percent of the Voting Shares of Scissor

question 12

Multiple Choice

Paper Corporation holds 80 percent of the voting shares of Scissor Company.On January 1,20X8,Scissor purchased $100,000 par value 12 percent first mortgage bonds of Paper from Cruse for $115,000.Paper originally issued the bonds to Cruse on January 1,20X6,for $110,000.The bonds have an 8-year maturity from the date of issue.Scissor's reported net income of $65,000 for 20X8,and Paper reported income (excluding income from ownership of Scissor's stock) of $90,000.
-Based on the information given above,what gain or loss on the retirement of bonds should be reported in the 20X8 consolidated income statement?

• A)$6,250 gain
• B)$7,500 gain
• C)$7,500 loss
• D)$6,250 loss

Recognize the impact of contemporary messages through traditional art forms.

Identify and attribute significant public art projects and their creators.

Understand cultural expressions and critiques through visual art.

Recognize architectural styles and their emotional and psychological impacts.

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Definitions:

Value Creation

The process through which businesses or organizations produce goods or services that are worth more than the cost of the inputs involved.

Customer Appeal

The attractiveness of a product or service to potential and existing customers, often influencing their purchasing decisions.

Just-in-time Scheduling

A strategy used in manufacturing and production that aligns raw-material orders from suppliers directly with production schedules to reduce inventory costs.

Lazy Managers

Describes managers who avoid work and responsibilities, often causing inefficiency and dissatisfaction within the team or organization.