Sky Company, the 70%-owned subsidiary of Pulling Corporation had a net income of $160,000 and declared dividends of $60,000 during the fiscal year ended February 28, 2021. Fiscal Year 2021 depreciation and amortization of differences between current fair values and carrying amounts of Sky's identifiable net assets on the date of the business combination was $30,000; and Fiscal Year 2021 impairment of goodwill recognized in the Pulling-Sky business combination was $1,000. The minority interest in net income of Sky for Fiscal Year 2006 was:

a. $39,700

b. $48,000

c. $39,000

d. $91,000

On January 31, 2020, Combinor Company issued $900,000 face amount of 9%, 10-year bonds due January 31, 2030, with a present value of $965,423 at a 8% yield, to Combinee Company for its net assets. The journal entry for the merger includes:

a. Debit to investment in combinee net assets $65,423.

b. Debit to investment in combinee net assets $900,000.

c. Debit to investment in combinee net assets $ 834,577.

d. Debit to investment in combinee net assets $965,423.