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Wood Corporation owns 1 percent of Carter Company’s voting shares. On January 1, 20X3, Carter sold bonds with a par value of $690,000 at 98.

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Wood Corporation owns 1 percent of Carter Company’s voting shares.  On January 1, 20X3, Carter sold bonds with a par value of $690,000 at 98.  Wood purchased $460,000 par value of the bonds; the remainder was sold to nonaffiliates.  The bonds mature in five years and pay an annual interest rate of 8 percent.  Interest is paid semiannually on January 1 and July 1.

Required:

A.) What amount of interest expense should be reported in the 20X4 consolidated income statement? (Do not round your intermediate calculations.  Round your final answers to nearest whole dollar.)

B.) Prepare the journal entries Wood recorded during 20X4 with regard to its investment in Carter bonds. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.  Round your market rate of interest to 3 decimals.)

C.) Prepare all worksheet consolidation entries needed to remove the effects of the intercorporate bond ownership in preparing consolidated financial statements for 20X4.  (if no entry is required for a transaction/event, select “No journal entry required” Round your market rate of interest to 3 decimals.

 
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Pale Company was established on January 1, 20X1. Along with other assets, it immediately purchased land for $80,000, a building for $240,000,

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Pale Company was established on January 1, 20X1. Along with other assets, it immediately purchased land for $80,000, a building for $240,000, and equipment for $90,000. Pale uses straight-line depreciation and useful lives of 40 years and 10 years for the building and equipment, respectively, with no estimated residual value.

The depreciation for the equipment is 36k, I just cannot figure out how they come up with this number. Please assist.

 
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Lester Company transferred the following assets to a newly created subsidiary, Mumby Corporation, in exchange for 40,000 shares of its $3 par value

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Lester Company transferred the following assets to a newly created subsidiary, Mumby Corporation, in exchange for 40,000 shares of its $3 par value stock:

 CostBook Value
  Cash$40,000 $40,000 
  Accounts Receivable 75,000  68,000 
  Inventory 50,000  50,000 
  Land 35,000  35,000 
  Buildings 160,000  125,000 
  Equipment 240,000  180,000 

The following are the answers for Depreciation – how did they come up with those answers, if the questions doesn’t give you more details?

Accumulated depreciation–Buildings35,000
Accumulated depreciation–Equipment60,000
 
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Power Company owns 90 percent of Pleasantdale Dairy’s stock. The balance sheets of the two companies immediately after the Pleasantdale acquisition

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Power Company owns 90 percent of Pleasantdale Dairy’s stock. The balance sheets of the two companies immediately after the Pleasantdale acquisition showed the following amounts:

 Power

CompanyPleasantdale Dairy  Assets      Cash & Receivables$131,000 $87,000   Inventory  212,000  107,000   Land 85,000  43,000   Buildings & Equipment (net) 406,000  239,000   Investment in Pleasantdale Stock 279,000      Total Assets$1,113,000 $476,000    Liabilities & Stockholders’ Equity      Current Payables$70,000 $26,000   Long-Term Liabilities 267,000  170,000   Common Stock 393,000  71,000   Retained Earnings 383,000  209,000    Total Liabilities & Stockholders’ Equity$1,113,000 $476,000     

The fair value of the noncontrolling interest at the date of acquisition was determined to be $31,000. The full amount of the increase over book value is assigned to land held by Pleasantdale. At the date of acquisition, Pleasantdale owed Power $11,000 plus $1,300 accrued interest. Pleasantdale had recorded the accrued interest, but Power had not.

I need help ffiguring out the consolidation entry for Land? I don’t know what number to multiply by

 
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