Dane, Inc., owns Carlton Corporation. For the current year, Dane reports net income (without consideration of its
Question:
Dane, Inc., owns Carlton Corporation. For the current year, Dane reports net income (without consideration of its investment in Carlton) of $185,000 and the subsidiary reports $105,000. The parent had a bond payable outstanding on January 1, with a carrying amount of $209,000. The subsidiary acquired the bond on that date for $196,000. During the current year, Dane reported interest expense of $18,000 while Carlton reported interest income of $19,000, both related to the intraentity bond payable. What is consolidated net income?
a. $289,000
b. $291,000
c. $302,000
d. $304,000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Question Posted: