Paper Corporation holds 80 percent of the voting shares of Scissor Company. On January 1, 20X8, Scissor purchased $100,000 par value 12 percent Paper bonds from Cruse Corporation for $115,000. Paper originally issued the bonds to Cruse on January 1, 20X6, for $110,000. The bonds have an 8-year maturity from the date of issue and pay interest semiannually on June 30 and December 31 each year. Scissor' reported net income of $65,000 for 20X8, and Paper reported income (excluding income from ownership of Scissor's stock) of $90,000. Paper's partial bond amortization schedule is as follows:PMT# Interest$ PMTInterestExpense Amort ofDiscount(Premium)Premium(Discount)BondsPayableBV
ofBonds 1/1/20X6 10,000.00 100,000.00 110,000.00 1 6/30/20X6 6,000.00 5,579.78 (420.22) 9,579.78 100,000.00 109,579.78 2 12/31/20X6 6,000.00 5,558.47 (441.53) 9,138.25 100,000.00 109,138.25 3 6/30/20X7 6,000.00 5,536.07 (463.93) 8,674.33 100,000.00 108,674.33 4 12/31/20X7 6,000.00 5,512.54 (487.46) 8,186.86 100,000.00 108,186.86 5 6/30/20X8 6,000.00 5,487.81 (512.19) 7,674.68 100,000.00 107,674.68 6 12/31/20X8 6,000.00 5,461.83 (538.17) 7,136.51 100,000.00 107,136.51 Based on the information given above, what amount of consolidated net income should be reported for 20X8?
A. $134,240
B. $149,134
C. $136,134
D. $147,240
Answer: B
You might also like to view...
Suppose researchers discover that Swiss beer causes cancer when given in large amounts to British mice. This finding would likely result in a(n)
a. increase in the demand for Swiss francs. b. decrease in the demand for Swiss francs. c. increase in the supply of Swiss francs. d. decrease in the supply of Swiss francs.
Which, if any, of the following transactions will decrease a taxing jurisdiction’s ad valorem tax revenue imposed on real estate?
A. A tax holiday is granted to an out-of-state business that is searching for a new factory site. B. An abandoned church is converted to a restaurant. C. A public school is razed and turned into a city park. D. A local university sells a dormitory that will be converted for use as an apartment building. E. None of these.
Invasion of privacy consists of:
A) appropriation. B) intrusion. C) public disclosure of private facts. D) All of these are invasions of privacy.
Internal sources for capital include loans, stocks, and bonds.
Answer the following statement true (T) or false (F)