Question 22 Not yet answered Points out of 4.00 (For questions 22-25). You can use a blank excel spreadsheet. SUB is a 90% owned subsidiary of PAR. SUB issued $100,000 of 8%, 5-year bonds for $96,110 on 1/1/2015, when the market rate was 9%. Annual interest is paid on 12/31/. PAR purchased the bonds on 1/1/2018, for $103,667, when the market rate was 6%. Both companies use the effective interest method to amortize the premium/discount on the bonds. Please round to the nearest dollar and mark the closest answer when you find a difference (e.g., less than 1 dollar value) between your calculation and choices. Flag question How much gain or loss on retirement should be reported in 2018 consolidated statements? Select one: O a. 3,667 gain O b. 5,427 loss c. 3,667 loss O d. 1,760 loss Question 23 Not yet answered The net adjustment needed to consolidated income in the consolidation process for 2018 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 P Flag question Select one: O a. 2,622 increase O b. 2,805 decrease O c. 5,427 decrease O d. 2,714 decrease Question 24 Not yet answered The net adjustment needed to consolidated income in the consolidation process for 2019 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 P Flag question Select one: a. 2,714 increase b. 2,622 increase c. 5,427 decrease O d. 2,805 increase Question 25 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 Investment in Subsidiary Bond 101,887 b. Credit Discount 1,760 O c. Credit Gain 3,667 O d. Credit Bond Payable 100,000 Question 22 Not yet answered Points out of 4.00 (For questions 22-25). You can use a blank excel spreadsheet. SUB is a 90% owned subsidiary of PAR. SUB issued $100,000 of 8%, 5-year bonds for $96,110 on 1/1/2015, when the market rate was 9%. Annual interest is paid on 12/31/. PAR purchased the bonds on 1/1/2018, for $103,667, when the market rate was 6%. Both companies use the effective interest method to amortize the premium/discount on the bonds. Please round to the nearest dollar and mark the closest answer when you find a difference (e.g., less than 1 dollar value) between your calculation and choices. Flag question How much gain or loss on retirement should be reported in 2018 consolidated statements? Select one: O a. 3,667 gain O b. 5,427 loss c. 3,667 loss O d. 1,760 loss Question 23 Not yet answered The net adjustment needed to consolidated income in the consolidation process for 2018 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 P Flag question Select one: O a. 2,622 increase O b. 2,805 decrease O c. 5,427 decrease O d. 2,714 decrease Question 24 Not yet answered The net adjustment needed to consolidated income in the consolidation process for 2019 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 P Flag question Select one: a. 2,714 increase b. 2,622 increase c. 5,427 decrease O d. 2,805 increase Question 25 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 Investment in Subsidiary Bond 101,887 b. Credit Discount 1,760 O c. Credit Gain 3,667 O d. Credit Bond Payable 100,000