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JIS Corp. purchased 100% of the outstanding voting shares of BCL Inc. on December 31, Year 4. On that date, BCL reported $200,000 in common
JIS Corp. purchased 100% of the outstanding voting shares of BCL Inc. on December 31, Year 4. On that date, BCL reported $200,000 in common shares and $420,000 in retained earnings. Goodwill resulting from this acquisition amounted to $300,000. The amortization schedule for the FV differentials is prepared up to December 31, Year 6, as follows: Amortization of FV differentials Item FV differential per acquisition differential schedule Amortization to beginning of Year 6 Unamortized FV differential to beginning of Year 6 Amortization in Year 6 Unamortized FV differential to end of Year 6 Inventory $(35,000) $(35,000) $ - $ - $ - Land (170,000) - (170,000) (85,000) (85,000) Building and equipment (315,000) (31,500) (283,500) (31,500) (252,000) Long-term debt 215,000 86,000 129,000 86,000 43,000 Total $(305,000) $19,500 $(324,500) $(30,500) $(294,000) During Year 6, in their legal entity income statements, JIS reported $140,000 of interest expense, and BCL reported $190,000. What amount would be reported as consolidated interest expense on the consolidated SCI? Question 3 options: a) $244,000 b) $287,000 c) $373,000 d) $416,000
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