Incomplete Data
Ballard Corporation purchased 70 percent of Condor Company's voting shares on January 1, 20X4, at underlying book value. On that date it also purchased $100,000 par value 12 percent Condor bonds, which had been issued on January 1, 20X1, with a 10-year maturity.
During preparation of the consolidated financial statements for December 31, 20X4, the following eliminating entry was made in the worksheet:
Bonds Payable | 100,000 |
|
Bond Premium | 6,000 |
|
Loss on Bond Retirement | 3,500 |
|
Interest Income | ? |
|
Investment in Condor Company Bonds |
| 109,000 |
Interest Expense |
| ? |
Required
a.What price did Ballard pay to purchase the Condor bonds?
b.What was the carrying amount of the bonds on Condor's books on the date of purchase?
c.If Condor reports net income of $30,000 in 20X5, what amount of income should be assigned to the noncontrolling interest in the 20X5 consolidated income statement?
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