Assume the same facts as in E8-6 except that the company uses straight-line amortization:

Required
Select the correct answer for each of the following questions.
1. What amount of interest expense should be included in the 20X4 consolidated income statement?
a. $14,000.
b. $18,000.
c. $21,000.
d. $27,000.
2. What amount of gain or loss on bond retirement should be included in the 20X4 consolidated income statement?
a. $4,000 gain.
b. $4,000 loss.
c. $12,000 gain.
d. $16,000 loss.
3. Income assigned to the noncontrolling interest in the 20X4 consolidated income statement should be
a. $6,000.
b. $8,100.
c. $8,400.
d. $16,000.