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On January 1, 2021, Jay Company acquired all the outstanding ownership shares of Zee Company. In assessing Zee's acquisition-date fair values, Jay concluded that the
On January 1, 2021, Jay Company acquired all the outstanding ownership shares of Zee Company. In assessing Zee's acquisition-date fair values, Jay concluded that the carrying value of Zee's long-term debt (8-year remaining life) was less than its fair value by $30,400. At December 31, 2021, Zee Company's accounts show interest expense of $13,230 and long- term debt of $490,000. 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? a. b. Interest expense Long-term debt $17,030 $520,400 $17,030 $516,600 $9, 430 $520,400 $9,430 $516, 600 d. Multiple Choice Option A Option B 0 Option C Option D
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