Since Coco acquired Ferdinand, Coco has charged Ferdinand an annual management fee of

$$70,000.$ Ferdinand paid Coco for management services on January $31$ of the year

next.

How is the change in the vesting differential for bonds payable reflected in Coco's $2023$ consolidated income statement?

$1.$ It would be reflected in other charges.

$2.$ It would be reflected in depreciation$/$amortization charges.

$3.$ It would be reflected in the cost of goods sold. It would be

$4.$ reflected in sales.