Questions by travis06 - Page 33
Saturn Corporation issued $300,000 par value 10-year bonds at 107 on January 1, 20X3, which Star Corporation purchased. Pluto Corporation owns 65% of Saturn's voting shares. On Jan 1, 20X7, Pluto Corporation purchased $120,000 face value of Saturn bonds from Star for $118,020. On the date Pluto purchased the bonds, the bonds' carrying value on Saturn's book was $126,019. The bonds pay 12 percent interest annually on December 31. The preparation of consolidated financial statements for Saturn and Pluto at December 31, 20X9, required the following consolidating entry: Based on the information given above, what amount of gain or loss on bond retirement is included in the 20X7 consolidated income statement? a. $8,000 gain b. $5,200 gain c. $8,000 loss d. $5,200 loss
Read the following excerpt from Narrative of the Life of Fredrick Douglass, by Fredrick Douglass and answer the question that follows.The plan which I adopted, and the one by which I was most successful, was that of making friends of all the little white boys whom I met in the street. As many of these as I could, I converted into teachers. With their kindly aid, obtained at different times and in different places, I finally succeeded in learning to read. When I was sent of errands, I always took my book with me, and by doing one part of my errand quickly, I found time to get a lesson before my return. I used also to carry bread with me, enough of which was always in the house, and to which I was always welcome; for I was much better off in this regard than many of the poor white children in our neighborhood. This bread I used to bestow upon the hungry little urchins, who, in return, would give me that more valuable bread of knowledge. I am strongly tempted to give the names of two or three of those little boys, as a testimonial of the gratitude and affection I bear them; but prudence forbids;not that it would injure me, but it might embarrass them; for it is almost an unpardonable offence to teach slaves to read in this Christian country.Which of the following best summarizes the passages?The white boys in his neighborhood taught him to read in exchange for pieces of bread.It was against the rules to teach slaves to read in white Christian country.Frederick Douglass was wealthy while the white boys were poor.Frederick Douglass couldnt go to school because he had too many errands to do.