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

question 63

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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Traditional Values

Beliefs, moral codes, and customs passed down from generation to generation within a culture or society.

Anti-Immigrant Sentiment

A negative bias or prejudice against immigrants, often manifesting in discriminatory attitudes or policies.

Anti-Affirmative Action

Opposition to policies or measures that aim to improve opportunities for historically socio-politically disadvantaged groups.

Cultural Pre-competence

A stage where individuals or organizations start to recognize the lack of understanding or capability in dealing with cultural diversity and begin to seek knowledge.