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Question 18 (For questions 18-21). You can use a blank excel spreadsheet. Not yet answered Points out of 4.00 SUB is an 80% owned subsidiary of PAR. SUB issued $100,000 of 8%, 10-year bonds for $95,000 on 1/1/2011. Annual interest is paid on 12/31/. PAR purchased the bonds on 1/1/2017, for $102,000. Both companies use the straight-line method to amortize the premium/discount on the bonds. How much gain or loss on retirement should be reported in 2017 consolidated statements? P Flag question Select one: a. 2,000 loss O b. 2,000 gain O c. O O d. 4,000 loss Question 19 Not yet answered The net adjustment needed to consolidated income in the consolidation process for 2017 is: (hint: complete the subsidiary income distribution schedule and calculate the surplus of a gain or loss on retirement and the interest adjustment) Points out of 4.00 Flag question Select one: O a. 4,000 decrease b. 1,000 increase c. 3,000 decrease O d. 3,500 decrease Question 20 The elimination and adjustment process for 2017 consolidated statements include: Not yet answered Points out of 4.00 Select one: a. Credit Interest Expense 8,000 Flag question O b. Debit Interest Revenue 7,500 O c. Credit Investment in Subsidiary Bond 102,000 O d. Credit Discount 500 Question 21 Not yet The elimination and adjustment process for 2018 consolidated statements include: answered Points out of 4.00 Select one: P Flag question a. Credit Discount 500 b. Debit Retained Earnings - PAR 2,400 O c. Credit Investment in Subsidiary Bond 101,500 O d. Debit Bond Payable 99,000 Question 18 (For questions 18-21). You can use a blank excel spreadsheet. Not yet answered Points out of 4.00 SUB is an 80% owned subsidiary of PAR. SUB issued $100,000 of 8%, 10-year bonds for $95,000 on 1/1/2011. Annual interest is paid on 12/31/. PAR purchased the bonds on 1/1/2017, for $102,000. Both companies use the straight-line method to amortize the premium/discount on the bonds. How much gain or loss on retirement should be reported in 2017 consolidated statements? P Flag question Select one: a. 2,000 loss O b. 2,000 gain O c. O O d. 4,000 loss Question 19 Not yet answered The net adjustment needed to consolidated income in the consolidation process for 2017 is: (hint: complete the subsidiary income distribution schedule and calculate the surplus of a gain or loss on retirement and the interest adjustment) Points out of 4.00 Flag question Select one: O a. 4,000 decrease b. 1,000 increase c. 3,000 decrease O d. 3,500 decrease Question 20 The elimination and adjustment process for 2017 consolidated statements include: Not yet answered Points out of 4.00 Select one: a. Credit Interest Expense 8,000 Flag question O b. Debit Interest Revenue 7,500 O c. Credit Investment in Subsidiary Bond 102,000 O d. Credit Discount 500 Question 21 Not yet The elimination and adjustment process for 2018 consolidated statements include: answered Points out of 4.00 Select one: P Flag question a. Credit Discount 500 b. Debit Retained Earnings - PAR 2,400 O c. Credit Investment in Subsidiary Bond 101,500 O d. Debit Bond Payable 99,000

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