QUESTION 23 Peanut Co. reported current earnings of $560,000 while paying $56,000 in cash dividends. Jelly Co. earned $126,000 in net income and distributed 14,000 in dividends. Peanut held a 70% interest in Jelly for several years, an investment that it originally acquired by transferring consideration equal to the book value of the underlying net assets. Peanut used the equity method to account for these shares. On January 1, 2020, Jelly purchaed Peanut's 8% bonds in the open market for 593,000 The bonds had originally been issued several years ago at 92, reflecting a 10% effective interest rate. On the date of the bond purchase, the book value of the bonds payable was $107.000 What is the non-controlling interest's share of the subsidiary's net income? 542,000 $37,800 $40,070 $44,080 None of the above