Business, 15.07.2020 01:01, rclara34oxbrr9
Stallion Corporation sold $100,000 par value, 10-year first mortgage bonds to Pony Corporation on January 1, 20X5. The bonds, which bear a nominal interest rate of 12 percent, pay interest semiannually on January 1 and July 1. The current market interest rate is 11 percent. Pony Corporation owns 65 percent of the voting stock of Stallion Corporation, and consolidated statements are prepared on December 31, 20X7.
Required:
a. What was the original purchase price of the bonds to Pony Corporation? (Round your answer to 2 decimal places.)
b. What is the balance in Pony’s bond investment account on December 31, 20X7? (Do not round your intermediate calculations. Round your final answer to nearest whole dollar.)
c. Prepare the worksheet consolidation entry or entries needed to remove the effects of the intercompany ownership of bonds in preparing consolidated financial statements for 20X7.
Answers: 3
Other questions on the subject: Business
Business, 22.06.2019 07:30, cherylmorton7302
What is the relationship between the national response framework and the national incident management system (nims)? a. the national response framework replaces the nims, which is now obsolete. b. the response protocols and structures described in the national response framework align with the nims, and all nims components support response. c. the nims relates to local, state, and territorial operations, whereas the nrf relates strictly to federal operations. d. the nims and the national response framework cover different aspects of incident management—the nims is focused on tactical planning, and the national response framework is focused on coordination.
Answers: 3
Business, 22.06.2019 12:30, chycooper101
Rossdale co. stock currently sells for $68.91 per share and has a beta of 0.88. the market risk premium is 7.10 percent and the risk-free rate is 2.91 percent annually. the company just paid a dividend of $3.57 per share, which it has pledged to increase at an annual rate of 3.25 percent indefinitely. what is your best estimate of the company's cost of equity?
Answers: 1
Business, 22.06.2019 18:00, firesoccer53881
If you would like to ask a question you will have to spend some points
Answers: 1
Business, 22.06.2019 19:50, alexdziob01
Right medical introduced a new implant that carries a five-year warranty against manufacturer’s defects. based on industry experience with similar product introductions, warranty costs are expected to approximate 2% of sales. sales were $8 million and actual warranty expenditures were $42,750 for the first year of selling the product. what amount (if any) should right report as a liability at the end of the year?
Answers: 2
Do you know the correct answer?
Stallion Corporation sold $100,000 par value, 10-year first mortgage bonds to Pony Corporation on Ja...
Questions in other subjects:
Mathematics, 28.01.2020 02:31
Mathematics, 28.01.2020 02:31
English, 28.01.2020 02:31
History, 28.01.2020 02:31
Mathematics, 28.01.2020 02:31
