Sullivan Company has acquired 100% of the outstanding common stock of Davis Company. Income Statement figures at 12/31/2021 from the two companies are: Sullivan Davis Revenues and interest income (785,000) (435,000) Operating and interest income 595,000 276,000 Other gains and losses (163,000) (47,000) Net income (353,000) ($206,000) Sullivan bought bonds on the open market for $103,500 that were originally issued by Davis. The bonds had a face value of $100,000, a cash interest rate of 8%, and an effective interest rate of 10%. On the date that Davis sold the bonds, the liability the company showed was $95,500 and an effective interest rate of 9%. On the consolidated income statement for 2021, what is the amount of the operating and interest expense?

Answer rating: 100% (QA)

1209650 Answer Revenue and interest ... View the full answer