Peanut Corporation acquired 80 percent of Snoopy Company's voting shares on January 1, 20X8, at underlying book value. On Dec. 31, 20X8, it also purchased $500,000 par value 8 percent Snoopy bonds, which had been issued on January 1, 20X5 to Schulz Corporation (unaffiliated with either Peanut or Snoopy) at a $45,000 premium. The bonds were originally issued with a 12-year maturity and pay interest annually on December 31. During preparation of the consolidated financial statements for December 31, 20X8, the following consolidating entry was included in the consolidation worksheet: Bonds Payable500,000 Bond Premium33,769 Loss on Bond Retirement16,875 Investment in Snoopy Company Bonds 550,644Based on the information given above, what price did Peanut pay to purchase the Snoopy bonds?
A. $533,769
B. $516,875
C. $550,644
D. $500,000
Answer: C
You might also like to view...
Roberts Enterprises has budgeted sales in units for the next five months as follows: June4,500units??July7,100unitsAugust5,300unitsSeptember6,700unitsOctober3,700units?Past experience has shown that the ending inventory for each month must be equal to 10% of the next month's sales in units. The inventory on May 31 contained 410 units. The company needs to prepare a production budget for the second quarter of the year.?The desired ending inventory for August is:
A. 370 units B. 710 units C. 670 units D. 530 units
On the statement of cash flows, the cash flows from operating activities section would include
a. receipts from the issuance of capital stock b. receipts from the sale of investments c. payments for the acquisition of investments d. cash receipts from sales activities
Jordan Manufacturing uses a predetermined overhead allocation rate based on direct labor cost. At the beginning of the year, it estimated the manufacturing overhead rate to be 30% times the direct labor cost. In the month of June, Jordan completed Job 13C, and its details are as follows:
What is the cost per unit of finished product of Job 13C? (Round your answer to the nearest cent.)
A) $168.50
B) $146.60
C) $137.05
D) $136.50
Broadly speaking, the four channels of communication include visual, written, oral, and nonverbal
Indicate whether the statement is true or false