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How to solve Pepper Enterprises owns 95 percent of Salt Corporation. On...

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Pepper Enterprises owns 95 percent of Salt Corporation. On January 1,20X1, Salt issued $250,000 of five-year bonds at 115. Annual interest of 14 percent is paid semiannually on January 1 and July 1. Pepper purchased $150,000 of the bonds on August 31,203, at par value. The following balances are taken from the separate 203 financial statements of the two companies:
Note: Assume using straight-line amortization of bond discount or premium.
\table[[,Pepper,Salt],[Enterprises,Corporation,],[Investment in Salt Corporation Bonds,$155,700,],[Interest Income,7,583,],[Interest Receivable,10,500,],[Bonds Payable,,$250,000
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