37. Effect on consolidated net income of acquisition of affiliate's debt from non-affiliate A Parent Company owns 100 percent of its Subsidiary. During 2018, the Parent company reports net income (by itself, without any investment income from its Subsidiary) of $650,000 and the subsid- iary reports net income of $260,000. The parent had a bond payable outstanding on January 1, 2018, with a carrying value equal to $546,000. The Subsidiary acquired the bond on January 1, 2018 for $513,500. During 2018, the Parent reported interest expense (related to the bond) of $45,500, while the Subsidiary reported interest income (related to the bond) of $41,600. What is consolidated net income for the year ended December 31, 2018? a. $910,000 b. $946,400 942,500 d. $913,900 liate's debt from non-affiliate C. d. $913,900 39. Effect on consolidated net income of acquisition of affiliate's debt from non-affiliate A Parent Company owns 100 percent of its Subsidiary. During 2018, the Parent company reports ne income (by itself, without any investment income from its Subsidiary) of $1,050,000 and the subsidiary reports net income of $420,000. The parent had a bond payable outstanding on December 31, 2018, with a carrying value equal to $882,000. The Subsidiary acquired the bond on December 31, 2018 for $829,500. During 2018, the Parent reported interest expense (related to the bond) of $73,500 while the Subsidiary reported no interest income (related to the bond). What is consolidated net income for the year ended December 31, 2018? $1,543,500 b. $1,470,000 $1,596,000 d. $1,522,500 a. c