Fargus Corporation Owned 51% of the Voting Common Stock of Sanatee

question 15

Essay

Fargus Corporation owned 51% of the voting common stock of Sanatee, Inc. The parent's interest was acquired several years ago on the date that the subsidiary was formed. Consequently, no goodwill or other allocation was recorded in connection with the acquisition price.
On January 1, 2010, Sanatee sold $1,400,000 in ten-year bonds to the public at 108. The bonds pay a 10% interest rate every December 31. Fargus acquired 40% of these bonds on January 1, 2012, for 95% of the face value. Both companies utilized the straight-line method of amortization.
What consolidation entry would be recorded in connection with these intra-entity bonds on December 31, 2013?

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Definitions:

Criminal Act

An action that violates the laws of a state or country, which is punishable by the government.

HCR-20

A risk assessment tool used to evaluate the risk of violence in individuals, particularly those with a history of violence.

Historical Factors

Elements from the past that have influenced or caused current conditions or situations.