Hello Is anyone able to help with intercompany acquiring of bonds for consolidated statements?

Parent buys subs bonds

Have the following information:

		BONDS
Issuer's Facts:			Acquirer's Facts:
			Acquired Jan.	20X5
			% acquired	30%
Face value	900,000		Face value	270,000
Stated Rate	7.25%		Stated Rate	7.25%
Effective Rate	6.50%		Effective Rate	7.00%
Interest Pmts.	65,250		Interest Pmts.	19,575
Bonds Life	10		Bonds Life	5
At issuance:			At bond purchase:
PV of Principal	$479,453		PV of Principal	$192,506
PV of Interest	$469,071		PV of Interest	$80,261
Bond price	$948,525		Bond price	$272,768

Looking for :

	Issuer's
	Book Value
	of Constr.	Construct.	Unrecognized
	Retired	(Gain)	(Gain) Loss
	Bonds	Loss	80%	20%
1/1/2015
12/31/2015
12/31/2016
12/31/2017
12/31/2018

Answer rating: 100% (QA)

ANS WER The book value of the bonds at the inception of the consolidation would be the carrying valu... View the full answer