Campbell Inc. owned all of Gordon Corp. For 2009, Campbell reported net income (without consideration

of its investment in Gordon) of $280,000 while the subsidiary reported $112,000. The subsidiary had bonds

payable outstanding on January 1, 2009, with a book value of $297,000. The parent acquired the bonds on that

date for $281,000. During 2009, Campbell reported interest income of $31,000 while Gordon reported interest

expense of $29,000. What is consolidated net income for 2009?

The answer is 406,000. what are the steps