Multiple Choice
Hunter Corporation holds 80 percent of the voting shares of Moss Company. On January 1, 20X8, Moss purchased $100,000 par value 12 percent first mortgage bonds of Hunter from Cruse for $115,000. Hunter originally issued the bonds to Cruse on January 1, 20X6, for $110,000. The bonds have an 8-year maturity from the date of issue. Moss' reported net income of $65,000 for 20X8, and Hunter reported income (excluding income from ownership of Moss's stock) of $90,000.
Based on the information given above, what amount of consolidated net income should be reported for 20X8?
A) $163,750
B) $161,250
C) $146,250
D) $148,750
Correct Answer:
Verified
Correct Answer:
Verified
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