Advanced Accounting 11th Edition by Paul Fischer,William Tayler, Rita Cheng

Exercise 19

Subsidiary Company S has $1,000,000 of bonds outstanding at 8% annual interest. The bonds have 10 years to maturity. If the parent, Company P, is able to purchase the bonds at a price that reflects 6% annual interest, how will the noncontrolling interest be affected in the current and future years? Your response need not be quantified.