Answered step by step
Verified Expert Solution
Question
1 Approved Answer
MegaHoldings Group, a significant conglomerate, and MiniFirm Ltd, its subsidiary, are involved in a financial transaction. Initially, on January 1, 2021, MegaHoldings Group issued
MegaHoldings Group, a significant conglomerate, and MiniFirm Ltd, its subsidiary, are involved in a financial transaction. Initially, on January 1, 2021, MegaHoldings Group issued bonds into the financial market. Two years later, on January 1, 2023, MiniFirm Ltd bought these bonds from the market entirely. The financial specifics for this transaction have been updated as follows: Bonds Nominal (Face) Value of the bonds: $1,000,000 Coupon Rate: 6% Initial Bond Release by MegaHoldings Group Issuance Price: $807,470 Market Rate: 9% Bond Acquisition by MiniFirm Ltd: Acquisition Price: $1,064,632 Market Rate at Acquisition: 5% Please select the right consolidation entry [B] Bonds Payable (B/P) 1,000,000 Interest Revenue 53,232 Loss on Retirement of Bonds 230,678 Discounts on Bonds Payable (B/P) 150,990 Investment in Bonds 1,057,864 Interest Expense 75,056 Bonds Payable (B/P) 1,000,000 Interest Revenue 53,232 Loss on Retirement of Bonds 266,314 Discounts on Bonds Payable (B/P) 179,858 Investment in Bonds 1,064,632 Interest Expense 75.056 Bonds Payable (B/P) 1,000,000 Interest Revenue 60,000 Loss on Retirement of Bonds 208,854 Discounts on Bonds Payable (B/P) 150,990 Investment in Bonds 1,057,864 Interest Expense 60,000 Bonds Payable (B/P) 1,000,000 Interest Revenue 52,893 Loss on Retirement of Bonds 230,678 Discounts on Bonds Payable (B/P) 179,858 Investment in Bonds 1,057,864 Interest Expense 73,812
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Answer The correct answer is B Bonds Payable BP 1000000 Interest Revenue 53232 Loss on Retirement of Bonds 266314 Discounts on Bonds Payable BP 179858 Investment in Bonds 106 4632 Interest Expense 750...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started