Q:

How to figure gain on retirement of bond. Parent issues bond for 10M at 1.06. Sub buys 40% at 96.6. after 3 yrs step 1 - figure premium or discount for parent

belongs to book: ADVANCED ACCOUNTING|Debra C.jeter, Paul K.Chaney|7th edition| Chapter number:6| Question number:4

Ibrahimhamm

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2022-07-06

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Ibrahimhamm

2022-07-06

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if starts at premium, stays at premium
Parent sold at premium since sold at 1.06
Premium = 600,000 / 20 = 30,000/year
since s purchased 40%, 30,000 x .4 = 12,000/yr

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