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LO3 8. Effect on consolidated net income of acquisition of affiliate's debt from non-affiliate A Parent Company owns 100 percent of its Subsidiary. During 2019,

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LO3 8. Effect on consolidated net income of acquisition of affiliate's debt from non-affiliate A Parent Company owns 100 percent of its Subsidiary. During 2019, the Parent company reports net income (by itself, without any investment income from its Subsidiary) of $650,000 and the subsidiary reports net income of $260,000. The parent had a bond payable outstanding on January 1. 2018, with a carrying value equal to $546,000. The Subsidiary acquired the bond on January 1, 2018 for $513,500. During 2019, the Parent reported interest expense (related to the bond) of $45.500 while the Subsidiary reported interest income (related to the bond) of $41,600. What is consolidated net income for the year ended December 31, 2019? $910,000 b. $946,400 $942,500 d. $913,900 a. C

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