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Consolidated amounts when affiliate's debt is acquired from non-affiliate Assume that a Parent company owns 100 percent of its Subsidiary. On January 1, 2019, the
Consolidated amounts when affiliate's debt is acquired from non-affiliate Assume that a Parent company owns 100 percent of its Subsidiary. On January 1, 2019, the Parent company had 5480,000 of bonds payable (par) outstanding with a carrying value of $504,000. The bonds were originally issued to an unaffiliated company. On that same date, the Subsidiary acquired the bonds for $475,200. During 2019 , the Parent company reported $216,000 of (preconsolidation) income from its own operations (i.e., prior to any equity method adjustments by the Parent company) and after recording interest expense. The Subsidiary reported $120,000 of (pre-consolidation) income from its own operations after recording interest income. Related to the bonds during 2019 , the parent reported interest expense of $54,000 while the subsidiary reported interest income of $49,200. Determine the following amounts that will appear in the 2019 consolidated income statement: Note: If no amount will appear on the consolidated income statement, enter zero. If item c. is a loss, use a negative sign with your
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