Question - Sean Company Issued 10 Year bond with a par value of $800,000 on 1/1/07 for $900,000. Interest is Payable annually on 12/31. On 1/1/12 Pierre Company purchased all of Sean's bonds for $950,000. Sean is 60% owned subsidiary of Pierre. Both Companies Use straight line method.
A. Compute the gain or loss on the retirement of debt.
B. Prepare in general journey form the intercompany bond elimination entries for the consolidated statement work papers on 12/31/12.