On March 31, 2021, Sista Company acquired 40% of the shares of Loner Company. Sista paid $3,000,000 for the investment, and that amount is exactly equal to 40% of the book value of identifiable net assets on Loner's balance sheet. Casting recognized net income of $1,000,000 and paid $600,000 of dividends for 2021. After all closing entries are made for the year ended December 31, 2021, Sista investment revenue for the year would be:

A. $1,000,000

B. $400,000

C. 3,120,000

D. 300,000

E. 3,080,000

On January 1, 2020, Lala Corporation invested in Kinny Inc.s two-year, 10% notes, with interest receivable quarterly. Iniesta entered into a two-year interest rate swap agreement on January 1, 2020 and designated the swap as a fair value hedge. The agreement called Iniesta to make payment based on a 10% fixed interest rate on a notional amount of $200,000 and to receive interest based on a floating interest rate. The contract called for cash settlement of the net interest amount quarterly. Floating (LIBOR) settlement rates were 10% at January 1, 8% at March 31, and 6% June 30, 2020. The fair values of the investment in notes and swap agreement are as follows:

January 1 March 31 June 30

Fair value of interest rate swap 0 $6,200 $12,000 Fair value of the investment in notes $200,000 $206,200 $212,000

What is Lala's net cash settlement at March 31 and how will it be recorded?

A. $4,000, as interest revenue in the Income Statement

B. $4,000, as Other Comprehensive Income

C. $5,000, as Other Comprehensive Income

D. $5,000, as interest revenue in the Income Statement

E. 6,200, as interest revenue in the Income Statement

On April 1, 2020, Sandy Land enters into a contract to sell Machinery to Fashion Lab Equipment at $100,000, which is also the stand-alone selling price of the Machines. Sandy Land will receive cash payment immediately. Delivery is scheduled for May 1, 2020. As part of the contract, Sandy Land offers a 30% discount coupon to Fashion lab equipment for any purchases in the next year. Fashion lab equipment also offers a 5% discount on all sales to all customers. Based on experience, Sandy Land estimates a 20% probability that Fashion lab equipment will redeem the coupon, and that the coupon will be applied to $60,000 of purchases. How much unearned revenue (rounded to the next thousand) will Sandy Land record for the sale of Machinery ?

A. $3,000

B. $60,000

C. $97,000

D. 100,000

E. 103,000