Wood Corporation owns 70 percent of Carter Company’s voting shares. On January 1, 20X3, Carter sold...

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Wood Corporation owns 70 percent of Carter Company’s votingshares. On January 1, 20X3, Carter sold bonds with a par value of$652,500 at 98. Wood purchased $435,000 par value of the bonds; theremainder was sold to nonaffiliates. The bonds mature in five yearsand pay an annual interest rate of 8 percent. Interest is paidsemiannually on January 1 and July 1.
a. What amount of interest expense should be reported in the20X4 consolidated income statement? (Do not round yourintermediate calculations. Round your final answers to nearestwhole dollar.)
b. Prepare the journal entries Wood recordedduring 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 yourmarket rate of interest to 3 decimals. For example, .0547523 shouldbe rounded to 5.475%)
c. Prepare all worksheet consolidation entriesneeded to remove the effects of the intercorporate bond ownershipin preparing consolidated financial statements for 20X4.(If no entry is required for a transaction/event, select"No journal entry required" in the first account field. Round yourmarket rate of interest to 3 decimals. For example, .0547523 shouldbe rounded to 5.475%)

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GIVEN DATAWood Corporation owns 70 percent of Carter Companys votingsharesCarter sold bonds 652500 at 98Wood purchased 435000Annual interest rate 8 Interest is paid semiannually on January 1 and July 1REQUIREDa What amount of interest expense should be reported in the20X4 consolidated See Answer

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Wood Corporation owns 70 percent of Carter Company’s votingshares. On January 1, 20X3, Carter sold bonds with a par value of$652,500 at 98. Wood purchased $435,000 par value of the bonds; theremainder was sold to nonaffiliates. The bonds mature in five yearsand pay an annual interest rate of 8 percent. Interest is paidsemiannually on January 1 and July 1.a. What amount of interest expense should be reported in the20X4 consolidated income statement? (Do not round yourintermediate calculations. Round your final answers to nearestwhole dollar.)b. Prepare the journal entries Wood recordedduring 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 yourmarket rate of interest to 3 decimals. For example, .0547523 shouldbe rounded to 5.475%)c. Prepare all worksheet consolidation entriesneeded to remove the effects of the intercorporate bond ownershipin preparing consolidated financial statements for 20X4.(If no entry is required for a transaction/event, select"No journal entry required" in the first account field. Round yourmarket rate of interest to 3 decimals. For example, .0547523 shouldbe rounded to 5.475%)