Highlight, Inc., owns all outstanding stock of Kiort Corporation. The two companies report the following balances for the year ending December 31, 2009: LO4 Highlight Kiort Revenues and interestincome. $(670,000) $(390,000)

Operating and interestexpense. 540,000 221,000 Other gains and losses.(120,000) (32,000)

Net income.$(250,000) $(201,000)

On January 1, 2009, Highlight acquired on the open market bonds for $108,000 originally issued by Kiort. This investment had an effective rate of 8 percent. The bonds had a face value of $ 100,000 and a cash interest rate of 9 percent. At the date of acquisition, these bonds were shown as liabilities by Kiort with a book value of $84,000 (based on an effective rate of 11 percent). Determine the balances that should appear on a consolidated income statement for 2009.