Darges owns 51 percent of the voting stock of Walrus, Inc The parents 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 On January 1, 2008, Walrus sold $1,000,000 in 10 yea...

a Book Value of Bonds Payable January 1 2010 Book value January 1 2008 1050000 Amortization20082009 5000 per year 50000 premium 10 years for two years 10000 Book value of bonds payable January 1 2010 ...

Darges owns 51 percent of the voting stock of Walrus, Inc. The parents interest was acquired several

Question:

Darges owns 51 percent of the voting stock of Walrus, Inc. The parent’s interest was acquired several years ago on the date that the subsidiary was formed. Consequently, no or other allocation was recorded in connection with the acquisition.
On January 1, 2008, Walrus sold $1,000,000 in 10-year bonds to the public at 105. The bonds had a cash interest rate of 9 percent payable every December 31. Darges acquired 40 percent of these bonds on January 1, 2010. What consolidation entry would be recorded in connection with these intra-entity bonds for 96 percent of face value? Both companies utilize the straight-line method of amortization.
a. December 31, 2010?
b. December 31, 2011?
c. December 31, 2012?

Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of...