Saturn Corporation issued $300,000 par value 10-year bonds at 107 on January 1, 20X3, which Star Corporation purchased. On July 1, 20X7, Pluto Corporation purchased $120,000 face value of Saturn bonds from Star. The bonds pay 12 percent interest annually on December 31. The preparation of consolidated financial statements for Saturn and Pluto at December 31, 20X9, required the following consolidation entry:  Bonds Payable 120,000    Premium on Bonds Payable 2,520    Interest Income 14,760    Investment in Saturn Corporation Bonds    118,920 Interest Expense    13,560 Investment in Saturn Corporation Stock    3,120 NCI in NA of Saturn Corp.    1,680 Based on the information given above, what percentage of the subsidiary's ownership does the parent

company hold?

A. 75 percent
B. 80 percent
C. 95 percent
D. 65 percent


Answer: D

Business

You might also like to view...

Treasurers, Inc., a manufacturer of gift articles, uses a single plantwide rate to allocate indirect costs with machine hours as the allocation base. Estimated overhead costs for the year are $9,000,000. Estimated machine hours are 30,000. During the year, the actual machine hours used were 44,000.

Calculate the predetermined overhead allocation rate. A) $205 B) $153 C) $300 D) $120

Business

Estimates suggest that what percentage of North American businesses have some type of self-managed team?

a. 20-30% b. 50-60% c. 70-80% d. 80-90%

Business

Answer the following statements true (T) or false (F)

1. In a fostering change approach, management should provide the union with full information, training, and opportunities to participate in the design and implementation of change. 2. Labor unions resistance to change can be overcome by superior bargaining power and the threat of layoffs, bankruptcies or other adverse consequences. 3. Employers who are interested in fostering change can utilize manipulation, co-optation, coercion, and negotiation. 4. Public sector budget austerity is considered another aspect of financialization of markets due to the increased influence of financial institutions on public sector financial and nonfinancial decisions.

Business

The single European Union currency is called the ________.

A. krone B. krona C. pound D. euro

Business