Pfadt Inc. had $600,000 par of 8% bonds payable outstanding on January 1, 2011 due January 1, 2015 with an unamortized discount of $12,000. Senat is a 90%-owned subsidiary of Pfadt. On January 2, 2011, Senat Corporation purchased $150,000 par value of Pfadt's outstanding bonds for $152,000. The bonds have interest payment dates of January 1 and July 1. Straight-line amortization is used.

 
6. With respect to the bond purchase, the consolidated income statement of Pfadt Corporation and Subsidiary for 2011 showed a gain or loss of?


7. Bond Interest Receivable for 2011 of Pfadt's bonds on Senat's books was?

Answer rating: 100% (QA)

To determine the gain or loss on the bond purchase and the Bond Interest Receivable for 2011 we need ... View the full answer