1. Brax bought 80% of the Fox Company several years ago when fair value equaled book value. On January 1, 2017, Fox has $100,000 of 8% bonds that were issued at par value and with five years to maturity. Interest is paid annually on December 31. Both Brax and Fox would use the straight-line method to amortize any premium or discount incurred on the issuance or purchase of bonds. On January 1, 2018, Brax purchased all of Fox's bonds for $96,000. 
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3. Required: 
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5. a. Prepare the 2018 wage entries for Brax and Fox in their respective accounting records.
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7. b. Prepare the worksheet entries required for consolidation.

Answer rating: 100% (QA)

Jan 1 2018 Brax Books Investment in Foxs Bonds96000 Discount on Bonds Payable4000 Bonds Payable1000... View the full answer