Multiple-Choice Questions (Straight-Line Method) Assume the same facts as in E8-6...

Multiple-Choice Questions (Straight-Line Method)

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.