Stevens Company has had bonds payable of $10,000 outstanding for several years. On January 1, 2018, when there was an unamortized discount of $2,000 and a remaining life of 5 years, its 80% owned subsidiary, Matthews Company, purchased the bonds in the open market for $11,000. The bonds pay 6% interest annually on December 31. The companies use the straight-line method to amortize interest revenue and expense. Compute the consolidated gain or loss on a consolidated income statement for 2018.

-$3,000

Explanation:

Data provided in the given question:-

bonds payable = $10,000

unamortized discount = $2,000

purchased bonds = $11,000

The computation of the consolidated gain or loss on a consolidated income statement for 2018 is given below :-

= (bonds payable - unamortized discount) - purchased bonds

= ($10,000 - $2,000) - $11,000

= $8,000 - $11,000

= -$3,000

1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

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