On January 1, 2021, 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 $16,600. At December 31, 2021, Zee Companys accounts show interest expense of $13,950 and long-term debt of $310,000. What amounts of interest expense and long-term debt should appear on the December 31, 2021, consolidated financial statements of Jay and its subsidiary Zee?

	Interest expense	Long-term debt
a.	$16,025	$326,600
b.	$16,025	$324,525
c.	$11,875	$326,600
d.	$11,875	$324,525

Multiple Choice

• Option D

• Option A

• Option C

• Option B