jan 1, 20X8, Subsidiary sold $100,000 par value of 6%, ten-year bonds for $97,000. The bonds pay interest semi-annually on January 1 and July 1 of each year.
On January 1, 20X9, Parent repurchased all of Subsidiary's bonds for $96,400. The bonds are still held on December 31, 20X9.
prepare the elimintion entries for 12/31/09 and 12/31/10
Compute discount/premium
Compute the gain/loss
Compute the interest exp/loss