P6-10 - $22,000 while Fey reported interest income of...

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Jordan, Inc. owns Fey Corporation. For 2011, Jordan reports net income (without consideration of its investment in Fey) of $200,000 and the subsidiary reports $80,000. The parent had a bond payable outstanding on January 1, 2011, with a book value of $212,000. The subsidiary acquired the bond on that date for $199,000. During 2011, Jordan reported interest expense of
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Unformatted text preview: $22,000 while Fey reported interest income of $21,000. What is the consolidated net income? a) $266,000 b) $268,000 c) $292,000 d) $294,000 Total income= 200000+80000=280000 280000-13000(discount on bonds)- 1000(interest expenses)= 266000 Since 21000 is the expense for parent but the income for subsidiary , so it is not considered....
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