Question

Jordan, Inc., owns Fey Corporation. For 2011, Jordan reports net income (without consideration of its investment in Fey) of $200,000 and the subsidiary reports $80,000. The parent had a bond payable outstanding on January 1, 2011, with a book value of $212,000. The subsidiary acquired the bond on that date for $199,000. During 2011, Jordan reported interest expense of $22,000 while Fey reported interest income of $21,000. What is the consolidated net income?
a. $266,000.
b. $268,000.
c. $292,000.
d. $294,000.



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  • CreatedOctober 04, 2014
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