Philadelphia Company (parent) owns 80% of the common stock of Seattle Company (subsidiary). On January1st,...
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Philadelphia Company (parent) owns 80% of the common stock of Seattle Company (subsidiary). On January1st, 2015, Seattle Company issued $200,000 of 10-year 6% bonds at face value. Interest is payable on January 1st each year. On January 2nd, 2016, Philadelphia Company purchased 100% of these bonds from outsider bondholders for $209,000.
On the consolidation worksheet for 2016, the entry (or entries) to eliminate the bonds payable would include which of the following?
Credit investment in Seattles bonds $208,000
How do you arrive to the 208,000?
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