SELECT THE BEST ANSWER (Shows references are required) 1. Pietro Co., $10,000 bond originally issued by its 80%-owned subsidiary on January 2, 2020. The bond issued in a prior year for $11,250, matures January 1, 2025, and pays 9% interest at December 31. The bond's book value at January 2, 2020 is $10,625, and Pietro Co., paid $9,500 to purchase it. Straight-line amortization used by both companies. How much interest income should eliminated in 2020? A. $720 B. $800 C. $900 D. $1,000 Use the following information to answer the question(s) below Paula Corporation owns an 80% interest in Sonia Company acquired at book value several years ago. On January 2, 2020, Sonia purchased $100,000 par of Paula's outstanding 10% bonds for $103,000. The bonds issued at par and mature on January 1, 2023. Straight-line amortization is used. Separate incomes of Paula and Sonia for 2020 are $350,000 and $120.000, respectively. Paula uses the equity method to account for the investment in Sonia. 2. Controlling interest share of consolidated net income for 2020 was A. $443,600 B. $444,000 C. $444,400 D. $448,000 3. Noncontrolling interest share for 2020 was A. $23,00 B. $23,60(Ctrl) - C. $24,000 D. $24,400 C. $24,000 D. $24,400 | 4. Which of the following statements is true conceming the acquisition of existing debt of a consolidated affiliate in the year of the debt acquisition? A. Recognition of any gain or loss deferred until the debt extinguished for purposes of reporting such debt on consolidated financial statements. B. Any gain or loss recognized in the year of acquisition on a consolidated income statement. C. Interest revenue generated from the debt of an affiliate recognized on a consolidated income statement. D. Interest expense recognized from carrying debt instruments recognized on a consolidated income statement