Company S is a wholly owned subsidiary of Company P. On January 1, 2012, Company S had $100,000 of 8% bonds outstanding. The bonds had five years remaining to maturity as of January 1, 2012, and an unamortized discount of $3,000. Company P purchased the bonds for $98,000 on January 1, 2012.The adjustment to the Consolidated income of the two companies required in the consolidating process for 2013 is:

A: decrease $200.

B: increase $8,600.

C: decrease $8,600.

D: increase $200.

Answer rating: 100% (QA)

Adjustment to consolidated income face value x 8 Unamortized premium5 100000x8 30005 80... View the full answer