Image caption Sibling Company Issued $670,000 par value, 10-year bonds at 105 on January 1, 20X3, which

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Sibling Company Issued $670,000 par value, 10-year bonds at 105 on January 1, 20X3, which Mega Corporation purchased. The coupon rate on the bonds is 9 percent. Interest payments are made semiannually on July 1 and January 1. On July 1, 20X6, Parent Company purchased $268,000 par value of the bonds from Mega for $260,200. Parent owns 70 percent of Sibling's voting shares. Required: a. What amount of gain or loss will be reported in Sibling's 20X6 Income statement on the retirement of bonds? b. Will a gain or loss be reported in the 20X6 consolidated financial statements for Parent for the constructive retirement of bonds? What amount will be reported? c. How much will Parent's purchase of the bonds change consolidated net Income for 20X6? d. Prepare the worksheet consolidation entry or entries needed to remove the effects of the Intercorporate bond ownership In preparing consolidated financial statements at December 31, 20X6. e. Prepare the worksheet consolidation entry or entries needed to remove the effects of the Intercorporate bond ownership in preparing consolidated financial statements at December 31, 20X7. f. If Sibling reports net income of $67,000 for 20X7, what amount of income will be assigned to the noncontrolling interest in the consolidated Income statement? Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Required F What amount of gain or loss will be reported in Sibling's 20X6 income statement on the retirement of bonds? Note: Leave no cells blank - be certain to enter "0" wherever required. No gain or loss 0 Sibling Company Issued $670,000 par value, 10-year bonds at 105 on January 1, 20X3, which Mega Corporation purchased. The coupon rate on the bonds is 9 percent. Interest payments are made semiannually on July 1 and January 1. On July 1, 20X6, Parent Company purchased $268,000 par value of the bonds from Mega for $260,200. Parent owns 70 percent of Sibling's voting shares. Required: a. What amount of gain or loss will be reported in Sibling's 20X6 Income statement on the retirement of bonds? b. Will a gain or loss be reported in the 20X6 consolidated financial statements for Parent for the constructive retirement of bonds? What amount will be reported? c. How much will Parent's purchase of the bonds change consolidated net Income for 20X6? d. Prepare the worksheet consolidation entry or entries needed to remove the effects of the Intercorporate bond ownership In preparing consolidated financial statements at December 31, 20X6. e. Prepare the worksheet consolidation entry or entries needed to remove the effects of the Intercorporate bond ownership in preparing consolidated financial statements at December 31, 20X7. f. If Sibling reports net income of $67,000 for 20X7, what amount of income will be assigned to the noncontrolling interest in the consolidated Income statement? Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Required F What amount of gain or loss will be reported in Sibling's 20X6 income statement on the retirement of bonds? Note: Leave no cells blank - be certain to enter "0" wherever required. No gain or loss 0

Answer rating: 100% (QA)

a Gain or loss on retirement of bonds in Siblings 20X6 income statement No gain or loss will be reported in Siblings 20X6 income statement on the reti... View the full answer