During 2011 jordan reported interest expense of 22000 while


Question - Jordan, Inc. owns Fey Corporation. For 2011, Jordan reports net income (without consideration of its investment in Fey) of $200,000 and the subsidiary reports $80,000. The parent had a bond payable outstanding on January 1, 2011, with a book value of $212,000. The subsidiary acquired the bond on that date for $199,000. During 2011, Jordan reported interest expense of $22,000 while Fey reported interest income of $21,000. What is the consolidated net income?

a) $266,000

b) $268,000

c) $292,000

d) $294,000

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Accounting Basics: During 2011 jordan reported interest expense of 22000 while
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