Dane, Inc., owns Carlton Corporation. For the current year, Dane reports net income (without consideration of its investment in Carlton) of $255,000 and the subsidiary reports $102,750. The parent had a bond payable outstanding on January 1, with a carrying amount of $237,000. The subsidiary acquired the bond on that date for $219,500. During the current year, Dane reported interest expense of $17,850 while Carlton reported interest income of $16,950, both related to the intra-entity bond payable.

What is consolidated net income?

a. $374,350.

b.$376,150.

c. $341,150.

d. $339,350.