On december 31, 2008, Pico acquired $ 250,000 per value of the outstanding $1,00

Question

On december 31, 2008, Pico acquired $ 250,000 per value of the outstanding $1,000,000 bonds of its subsidiary, sico, in the market for $ 200,000, on the date, Sico had a $ 100,000 discount on its total liability. Which one of the following is the net amount of gain or loss that will be recognized by pico in its December 31, 2008, consolidated financial statements as a result of its intercompany bonds? $ 150,000 $ 50,000 $25,000 $75,000 On October 1, year 1, Patton loaned $10,000 to Its 80% owned subsidiary, Sun Company. The one-year note has a 4% interest rate. Interest and principal are due on October 1, Year 2. On the December 31, Year 1 consolidated balance sheet, what amount on interest receivable will be shown as a result of the above transaction. $100 $400 $0 $200 On October 1, year 1, Patton loaned $10,000 to Its 80% owned subsidiary, Sun Company. The one-year note has a 4% interest rate. Interest and principal are due on October 1, Year 2. On the December 31, Year 1 consolidated balance sheet, what amount on Notes Payable will be shown as a result of the above transaction. $0 $10,000 $10,100 $10,200 Which one of the following would be a foreign currency transaction for the U.S. entity? A U.S. entity purchases goods from a Swiss entity to be settled In dollars. A German entity purchases goods from a U.S. entity to be settled In Euros. A U.S. entity purchases goods from a British entity to be settled in dollars. A U.S. entity sells goods to a Russian entity to be settled in dollars.

Explanation / Answer

19)

interest receivable =10000 * 4% = 400

therefore, option b is correct.

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