SUB is a 90% owned subsidiary of PAR. SUB issued $100,000 of 8%, 5-year bonds for $96,110 on 1/1/2015, when the market rate was 9%. Annual interest is paid on 12/31/. PAR purchased the bonds on 1/1/2018, for $103,667, when the market rate was 6%. Both companies use the effective interest method to amortize the premium/discount on the bonds. 1/ How much gain or loss on retirement should be reported in 2018 consolidated statements? a. 3,667 loss b. 3,667 gain c. 5,427 loss d. 1,760 loss   2/ The net adjustment needed to consolidated income in the consolidation process for 2018 is: (hint: complete the subsidiary income distribution schedule and calculate the surplus of a gain or loss on retirement and the interest adjustment) a. 2,714 decrease b. 5,427 decrease c. 2,622 increase d. 2,805 decrease

Concord Corporation owns corporate bonds at December 31, 2023, accounted for using the amortized cost model. These bonds have a par value of $992,000 and an amortized cost of $ 977,000. After an impairment review was triggered, Concord determined that the discounted impaired cash flows are $914,500 using the current market rate of interest, but are $910,000 using the market rate when the bonds were first acquired. The compary follows a policy of directly reducing the carrying amount of any impaired assets. Assume that no impairment loss had been recorded earlier. (a1) Assuming Concord is a private enterprise that applies ASPE, prepare the journal entry related to the impairment at December 31, 2023.

On November 1, 2015, Journeyman, LLC purchased 900 of the $1,000 face value, 9% bonds of Celebration Incorporated, for $948,000, including accrued interest of $13,500. The bonds matured on January 1, 2017, and interest was paid on March 1 and September 1. If Journeyman uses the straight-line method of amortization and the bonds are classified as available-for-sale, how should the net carrying value of the bonds be shown on Journeyman’s December 31, 2015 balance sheet?

Cullumber Company purchased $3050000 of 9%, 5-year bonds from Vaughn, Inc. on January 1, 2021, with interest payable on July 1 and January 1. The bonds sold for $3173740 at an effective interest rate of 8%. Using the effective-interest method, Cullumber Company decreased the Available-for-Sale Debt Securities account for the Vaughn, Inc. bonds on July 1, 2021 and December 31, 2021 by the amortized premiums of $10720 and $11080, respectively.At April 1, 2022, Cullumber Company sold the Vaughn bonds for $3140000. After accruing for interest, the carrying value of the Vaughn bonds on April 1, 2022 was $3147440. Assuming Cullumber Company has a portfolio of Available-for-Sale Debt Securities, what should Cullumber Company report as a gain or loss on the bonds? $-7440. $-123740. $-21800. $ 0.

On December 31, 2015, Martin Corp invested in Marlin’s 5-year, $200,000 bond with a 5% interest rate for $191,575. The bond pays semiannual interest on June 30th and December 31st.  The fair values of the bonds at the end of 2016~2018 are $194,500, $194,200, and $195,750.  Martin sold its investment in Marlin’s bond on July 1, 2019 at 98 ½ (i.e. selling price is = 98.5% of the face value).  Assuming the bonds are classified as Trading investment, prepare the journal entries on aforementioned dates.

Sheridan Company purchased $1250000 of 8 %, 5-year bonds from Pina, Inc. on January 1, 2025, with interest payable on July 1 and January 1. The bonds sold for $1299896 at an effective interest rate of 7%. Using the effective interest method, Sheridan decreased the Available for - Sale Debt Securities account for the Pina bonds on July 1, 2025 and December 31, 2025 by the amortized premiums of $4748 and $4892, respectively. At December 31, 2025, the fair value of the Pina bonds was $1317000. What should Sheridan report as other comprehensive income and as a separate component of stockholders' equity (assuming that this is Sheridan's first investment in available - for - sale debt securities)? Select answer from the options below $0 $26744 $9640 $17104

Crane Company purchased $1190000 of 8%, 5-year bonds from Carlin, Inc. on January 1, 2021, with interest payable on July 1 and January 1. The bonds sold for $1239996 at an effective interest rate of 7%. Using the effective interest method, Crane Company decreased the Available-for-Sale Debt Securities account for the Carlin, Inc. bonds on July 1, 2021 and December 31, 2021 by the amortized premiums of $4148 and $4292, respectively.At February 1, 2022, Crane Company sold the Carlin bonds for $1225900. After accruing for interest, the carrying value of the Carlin bonds on February 1, 2022 was $1230500. Assuming Crane Company has a portfolio of available-for-sale debt investments, what should Crane Company report as a gain (or loss) on the bonds? $0. $-14096. $-4600. $-9496.