Parent Company issued 10-year, 15% bonds with a par value of $500,000 on January 1, 2020 for
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Parent Company issued 10-year, 15% bonds with a par value of $500,000 on January 1, 2020 for $470,000. Interest is paid semiannually on June 30 and December 31. On December 31, 2021, $400,000 of the par value bonds were purchased by Sub Company for $410,000. Sub Company is an 80% subsidiary of the Parent Company. Both companies use the straight-line method to amortize bond premiums and discounts.
The total amount of constructive loss is ___________________________.
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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