Question: Prepare a journal entry (or entries) to account for the parents investment income for the current year if the reported income of its 80 percent-owned

Prepare a journal entry (or entries) to account for the parent’s investment income for the current year if the reported income of its 80 percent-owned subsidiary is $50,000 and the consolidated entity has a $4,000 constructive gain from the subsidiary’s acquisition of parent bonds.

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