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Return to question Highlight, Inc., owns all outstanding stock of Kiort December 31, 2017: n. The two companies report the following balances for the year
Return to question Highlight, Inc., owns all outstanding stock of Kiort December 31, 2017: n. The two companies report the following balances for the year ending Highlight iort (670,000) $(390,000) Revenues and interest income Operating and interest expense Other gains and losses Net income 221,000 (120.000(32,000 540,000 (250,000) (201,000) Note: Parentheses indicate a credit balance On January 1, 2017, Highlight acquired on the open market bonds for $108,000 originally issued by Kiort. This investment had an effective rate of 8 percent. The bonds had a face value of $100,000 and a cash interest rate of 9 percent. At the date of acquisition, these bonds were shown as liabilities by Kiort with a book value of $84,000 (based on an effective rate of 11 percent. Determine the balances that should appear on a consolidated income statement for 2017 Answer is not complete. Revenues and interest 1,068,000 Operating and interest expense Other 753,000 152,000 r gains and losses Net income (467,000) C
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