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. 1/ How much gain or loss on retirement should be reported in 2017 consolidated statements a. 4,000 loss b. 2,000 loss c. 0 d. 2,000 gain   2/ 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) a. 3,500 decrease b. 3,000 decrease c. 4,000 decrease d. 1,000 increase   3/ The elimination and adjustment process for 2017 consolidated statements include: a. Credit Investment in Subsidiary Bond 102,000 b. Debit Interest Revenue 7,500 c. Credit Interest Expense 8,000 d. Credit Discount 500

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Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.