WGU C243

When a bond is purchased at a premium, the amount of the premium is amortized periodically. The premium amortization process decreases interest income and a.) has no effect on the Investment in Bonds account. b.) decreases the Investment in Bonds account. c.) increases the Investment in Bonds account. - -b.) decreases the Investment in Bonds account In years subsequent to the acquisition of bonds payable of one affiliate by another affiliate, which of the following accounts are affected by...

Assuming no impairment in value before transfer, assets transferred by Parent company to another entity it has created should be recorded by the newly created entity: a. Cost to the Parent Company b. Book Value of the parent's company books at the date of transfer c. Fair value at the date of transfer d. Fair value of consideration exchanged by the newly created entity - -Correct: b. Book Value of the parent's company books at the date of transfer. (Because paren company is not purchasi...