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 2 - determine gain or loss

Ibrahimhamm

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2022-07-06

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Accounting, textbook solutions, Accounting textbook-solutions,

Ibrahimhamm

2022-07-06

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Parent BV at time of sale = 10Mx1.06 - (30,000x3) = 10,510,000
10,510,000 x .4 = 4,204,000
Sub BV = 3,864,000
4,204,000-3,864,000=340,000

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