Campbell Inc

Multiple Choice

Campbell Inc.owned all of Gordon Corp.For 2018, Campbell reported net income (without consideration of its investment in Gordon) of $280,000 while the subsidiary reported $112,000.There are no excess amortizations associated with this consolidation.The subsidiary had bonds payable outstanding on January 1, 2018, with a book value of $297,000.The parent acquired the bonds on that date for $281,000.During 2018, Campbell reported interest income of $31,000 while Gordon reported interest expense of $29,000.What is consolidated net income for 2018?

A) $406,000.
B) $374,000.
C) $378,000.
D) $410,000.
E) $394,000.