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Dug Incorporated, owns Cap Corporation. For the current year, Dug reports net income (without consideration of its investment in Cap) of $252,000 and the subsidiary
Dug Incorporated, owns Cap Corporation. For the current year, Dug reports net income (without consideration of its investment in Cap) of $252,000 and the subsidiary reports $110,000. The parent had a bond payable outstanding on January 1, with a carrying amount of $224,500. The subsidiary acquired the bond on that date for $209,000. During the current year, Dane reported interest expense of $25,200 while Carlton reported interest income of $22,200, both related to the intra-entity bond payable. What is consolidated net income?
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