Davidson, Inc owns 70% of the outstanding voting stock of Ernest Comoany. On January 2, 2011, Davidson
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Davidson, Inc owns 70% of the outstanding voting stock of Ernest Comoany. On January 2, 2011, Davidson sold 8 percent bonds payable with a $5,000,000 face value maturing January 2, 2031 at a premium of $400,000. On January 1, 2013, Ernest acquired 30 percent of these same bonds on the open market at 97.6. Both companies use the straight-line method of amortization. What adjustment should be made to Davidson's 2014 begining retained earinings as a result of this bond aquisition?
Related Book For
Advanced Accounting
ISBN: 978-0133451863
12th edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
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