Consolidated amounts when affiliate's debt is acquired from non-affiliate Assume that a Parent company owns 75 percent of its Subsidiary. On January 1, 2013, the Parent company had a $100,000 (face) 8 percent bond payable outstanding with a carrying value of $96,600. Several years ago, the bond was originally issued to an unaffiliated company for 92 percent of par value.

On January 1, 2013, the Subsidiary acquired the bond for $96,000. During 2013, the Parent company reported $400,000 of (pre-consolidation) 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 $140,000 of (pre-consolidation) income from its own operations after recording interest income. Related to the bond during 2013, the parent reported interest expense of $8,500 while the subsidiary reported interest income of $9,200. Determine the following amounts that will appear in the 2013 consolidated income statement:

Note: Use a negative sign with your answer to indicate a loss on constructive retirement of bond payable, if applicable.

Amount $ 0 tA 0 Account a. Interest income from bond investment b. Interest expense on bond payable $ C. Gain (Loss) on constructiveretirement of bond payable. $ d. Controlling interest in consolidated net income $ e. Noncontrolling interest in consolidated net income 0 0 $ 0