On January 1, 2019, P Company acquired all of S Company's voting shares.In assessingS's acquisition-date fair values, P concluded that the fair value of S's long-term debt (6 yearremaining life) was less than its carrying value by $48,000.At December 31, 2019, S's financial statements show interest expense of $24,000 and long-term debt of $550,000 butP's financial statements have neither long-term debt nor interest expense.What amount oflong-term debt and interest expense, respectively, should appear on the 12/31 consolidatedfinancial statements of the two companies?

Long-term debtInterest expense

1. $590,000$16,000
2. $510,000$16,000
3. $590,000$32,000
4. $510,000$32,000
5. (none of the above)