question archive On January 1, Year 1, Precor Company purchased all $100,000 worth of bonds from its wholly owned subsidiary, Shilo Company, in the open market paying $92,975
On January 1, Year 1, Precor Company purchased all $100,000 worth of bonds from its wholly owned subsidiary, Shilo Company, in the open market paying $92,975
Subject:BusinessPrice: Bought3
On January 1, Year 1, Precor Company purchased all $100,000 worth
of bonds from its wholly owned subsidiary, Shilo Company, in the open market paying $92,975. The bonds pay interest annually on December 31 at a stated rate of 12% and mature in 20 years. The bonds were issued 10 years ago for $90,792 when the market was paying 13.25%. Shilo Company has a current book value of $91,343 for the bonds. The market is currently paying 13%. The income tax rate is 21%. What are all the work paper elimination entries for Year 1.
