Pascalian Company owns a 90% interest in Sapp Company. On January 1, 2020, Pascalian had $300,000, 6% bonds outstanding with an unamortized premium of $9,000. The bonds mature on December 31, 2024. Sapp acquired one-third of Pascalian's bonds in the open market for $97,000 on January 1, 2020. Both companies use straight-line amortization of bond discounts/premiums. Interest is paid on December 31.

Q1. Consolidated Interest Expense and consolidated Interest Income, respectively, that appeared on the consolidated income statement for the year ended December 31, 2020 is ...

a. $0 and $0

b. $10,800 and $0

c. $10,800 and $6,600

d. $16,200 and $6,600