On January 1, 2018, Jay Company acquired all the outstanding ownership shares of Zee Company. In assessing Zees acquisition-date fair values, Jay concluded that the carrying value of Zees long-term debt (8-year remaining life) was less than its fair value by $29,600. At December 31, 2018, Zee Companys accounts show interest expense of $13,440 and long-term debt of $480,000. What amounts of interest expense and long-term debt should appear on the December 31, 2018, consolidated financial statements of Jay and its subsidiary Zee?

	Interest expense	Long-term debt
a.	$17,140	$509,600
b.	$17,140	$505,900
c.	$9,740	$509,600
d.	$9,740	$505,900

Multiple Choice

• Option A

• Option B

• Option C

• Option D