Question

2. Campbell Inc. owned all of Gordon Corp. For 2018, Campbell reported net income (without consideration of its investment in Gordon) of $280,000 while the subsidiary reported $112,000. There are no excess amortizations associated with this consolidation. The subsidiary had bonds payable outstanding on January 1, 2018, with a book value of $297,000. The parent acquired the bonds on that date for $281,000. During 2018, Campbell reported interest income of $31,000 while Gordon reported interest expense of $29,000. What is consolidated net income for 2018? A) $378,000 B) $406,000. C) $394,000 D) $374,000 E) $410,000 000,000; a

Answer 1

Income is $40 boy onsolidated Net в орьби Amount ($) parhaillay Net Income of Campbell Inc $ 280,000 for 2018 is $ 112,000 Addy - Net Income of Subsidiary $ 16,000 Income from acquisition of bond (297,000 - 2,81,000) (since it is not considered in above $280,000) $ 408,000 Len Discount & amortised as interest recognised less in books of Campbell (3100 - 29,000) ($ 2000) $40 6003 Scanned with CamScanner