On January 1, 2021, Maria, Inc. acquired 70% of the voting shares of Sandro, Inc. On December 31, 2022, Maria purchased bonds from Sandro with Sandro's book value of $150,000 for $85,000. Maria bought the bonds directly from the market and not from Sandro. These are the only bonds that Sandro has issued. In Sandro's books, the bonds appeared with a principal of $200,000 and an unamortized discount of $50,000. Required: Be sure to show all work to receive full credit. For how much will the Bond Withdrawal Gain account be reported in the 2022 Consolidated Income Statement? 

Required: Prepare the consolidation entry needed to prepare the 2020 financial statements.

Answer rating: 100% (QA)

The bonds will be recorded in c... View the full answer