Question 6 10 points Save Ans s company is a 90% owned subsidiary of p Company.

Question

Question 6 10 points Save Ans s company is a 90% owned subsidiary of p Company. On January 1, 2013 s company purchased for $680 000 bonds or com any that had a carrying value of $724,000 (par value $700,000). The bonds mature on December 31, 2014. Both companies use the straight-line method of amortization and have a December 31 year-end. The increase in 2013 consolidated income (i.e., income before subtracting noncontrolling interest) is OA $54,000 B. S45.000. C.$36,000. D. $44,00o. E. $46,000.

Explanation / Answer

Option D is correct

The increase in 2013 consolidated income (income before subtracting non controlling interest) is $724000-$680000 = $44000

Hence Option D is correct

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