Pete’s Farm Equipment owns 60 percent of Donovan’s
January 13th, 2018
Pete’s Farm Equipment owns 60 percent of Donovan’sAgricultural Supply. Pete’s has $1,000,000 of bondspayable outstanding with an unamortized discount of$38,000. Donovan’s buys $400,000 of the bonds from anunrelated party for $360,000. What is the amount ofworksheet elimination at the end of the year of the invest-ment with regard to the Loss or Gain on Early Retirementof Debt?a.$24,800 lossb.$2,000 gainc.$24,800 gaind.$2,000 loss