THIS IS A CONCEPT BASED QUESTION - WHY DID WE ADD INTEREST EXPENSE AND SUBTRACT INTEREST REVENUE IN #1 BUT IN #6 WE SUBTRACTED BOTH INTEREST REVENUE AND EXPENSE?

I thought we removed interest revenue by subtracting and removed interest expense by adding b/c they're intra entity (entry B*) but we did not do this in #6.

Dane, Incorporated, owns Carlton Corporation. For the current year, Dane reports net income (without consideration of its investment in Carlton) of $232,000 and the subsidiary reports $94,000. The parent had a bond payable outstanding on January 1 , with a carrying amount of $256,000. The subsidiary acquired the bond on that date for $247,000. During the current year, Dane reported interest expense of $23,200 while Carlton reported nterest income of $20,500, both related to the intra-entity bond payable. What is consolidated net income? Multiple Choice $332,300. $337,700. Highlight, Incorporated, owns all outstanding stock of Kiort Corporation. The two companies report the following balances for the year ending December 31, 2023: Note: Parentheses indicate a credit balance. On January 1, 2023, 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 carrying amount of $84,000 (based on an effective rate of 11 percent). Required: Determine the balances that should appear on a consolidated income statement for 2023. Note: Enter all amounts as positive amounts except for losses