Question $3$

$1\mathrm{.}5$ pts

If the subsidiary issues bonds to outsiders at a discount and the parent subsequently purchases these bonds from outsiders, the parent may buy these bonds at a premium, at a discount, or at par value.

True

False

Question $4$

$1\mathrm{.}5$ pts

At the beginning of $2020,$ Subsidiary $S$ issued $$100,000$ of $10$ percent, $10-$year bonds at $$98,000.$ Two years later, at the beginning of $2022,$ the Parent $P$ acquired S$\text{'}$s bonds from outsider bondholders for $$100,800.$ The book value of the bonds in S$\text{'}$s books at the beginning of $2022$ was $$98,400.$ What is the entry prepared in P$\text{'}$s books to record the acquisition of S$\text{'}$s bonds at the beginning of $2022?q,$

Investment in S$\text{'}$s Bonds

$q,$

Bonds Payable $$

Premium on Bonds Payable $$

Discount on Bonds Payable $$

Cash