S company issued bonds on Jan 1, 2014. Interest payments are semi annually on July 1 and Jan 1 of each year. The effective interest rate of amortization is used, face value is 200,000$ proceeds from bonds 213,950$. stated interest rate 9%. Life of the bonds are 10 years. Market interest rate is 8%

On January 1 2016 P Purchased in the market some of S company's bonds.

Face Value of bonds purchased 75,000$

purchase price of bonds 70,936$

Market interest rate on 1/1/16 was 10%

what are the consolidation entries for year 16, and how does this affect net income?

thanks if more info is needed please ask

 

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X v fx 6 D. E Book Value Schedule Year 16 NCI(10%) Common Stock Retained Eamings PIC Excess Par 4,000,000 $ 198, 162 (55,000) 4,143,162 P(90%) 800,000 1,000,000 $ %24 Beg BV Net Income (Dvidends) Ending BV 580,000 $ 19,816 $ (5 500) $ 594,316 S 5,220.000 178,346 (49,500) 5,348,846 1,000,000 S 800,000 X v fx 6 D. E Book Value Schedule Year 16 NCI(10%) Common Stock Retained Eamings PIC Excess Par 4,000,000 $ 198, 162 (55,000) 4,143,162 P(90%) 800,000 1,000,000 $ %24 Beg BV Net Income (Dvidends) Ending BV 580,000 $ 19,816 $ (5 500) $ 594,316 S 5,220.000 178,346 (49,500) 5,348,846 1,000,000 S 800,000

Answer rating: 100% (QA)

In the books of the Subsidiary company Coupon rate per period 92 450 ... View the full answer