Question: Only answer parts C through E please. I provided the entire question for better understanding. Apple owns 80% of Pear. Apple had a bond payable

Only answer parts C through E please. I provided the entire question for better understanding.

Apple owns 80% of Pear. Apple had a bond payable outstanding on January 1, 2010, with a book value of $212,000. Pear purchases the bond in the open market for $199,000.

a. How much is the gain or loss on retirement of the bond? (show your calculation).

b. Same facts as part a with Pear reporting interest income of $22,000 and Apple reporting interest expense of $21,000. How much is consolidated income in 2010?

c. Which special purpose entities must be consolidated.

d. Who is required to consolidate a variable interest entity?

e. What are the criteria to determine if a primary beneficiary exists?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Show works 1 On January 1, 2010, parent lends 70% owned subsidiary $5,000,000 at 6% annual interest to two years. Subsidiary pays the accrued interest at the end of each year. Answer the following a....

Chapter 6 Homewo on January 1, 2010, parent lends 70% owned subsidiary S5,000 000 at 6% annual interest fr two years. Subsidiary pays the accrued interest at the end of each year. Answer the fol a....

please answer the questions 4,5,6 2. Apple owns 80% of Pear. Apple had a bond payable outstanding on January 1, 2010 with a book value of $212,000. Pear purchases the bond in the open market for...

Prepare a Statement of Advice (SOA) for the Martins interviewed for Assignment 1. The case study information is attached as a picture at the bottom of the page. As this assignment is to be a SOA for...

i need help from section 3 part A I have already posted this and you asked me to post under advanced option Assignment Tier 1 Financial Planning (Tier1FPPA_AS_v1A3) Page 2 of 92 Student...

Im having trouble with question 3 part A of the attached file. I know and understand her needs but im not sure if im filling out the table correctly ? Assignment Tier 1 Financial Planning...

Hoyt, Inc. has estimated current year sales (in millions) for the next four quarters. Q1 $240Q2 $250 Q3 $205 Q4 $350 ? Sales for the 1st quarter next year are projected to be $230.? Accounts...

Directions to students: Download the solution to part 1 in the doc share (FILE: Unit 1 ETHICS CASE) or by clicking on the button to the left. Review the solution to parts 1 and 2 in the case. Drawing...

Hello. Can you help with this four question problem? Case PRIVATE EQUITY CASE: MERGER CONSOLIDATION The questions below COMBINE the Ohio & Maryland PT acquisitions as if they are a single c Learning...

List four basic financial statement analysis procedures, describe how you would calculate each procedure and discuss why you would use each procedure. In your initial response, please do not use...

1. Calculate R. Interpret. 2. Calculate the adjusted R. 3. Test whether the model is statistically significant. 4. Test whether each coefficient of the predictor variables is statistically...

CC Car Wash specializes in car cleaning services. The ser- vices offered by the company, the exact service time, and the resources needed for each of them are described in the table following: The...

In 2 0 2 1 , a stock was worth 2 0 0 dollars on January 1 st , and paid the following dividends: 1 7 dollars on April 1 st , 2 7 dollars on July 1 st , and 2 1 dollars on October 1 st . The effective...

QUESTION 1 For the following function prototype, fill in the blank for the return type. The function needs to return a vector of integers This is the part that is in red font. Do not include any...