Carlson,Inc

Multiple Choice

Carlson,Inc.owns 80 percent of Madrid,Inc.Carlson reports net income for 2009 (without consideration of its investment in Madrid,Inc. ) of $1,500,000.For the same year,Madrid reports net income of $705,000.Carlson had bonds payable outstanding on January 1,2009 with a carrying value of $1,200,000.Madrid acquired the bonds on January 3,2009 for $1,090,000.During 2009,Carlson reported interest expense on the bonds in the amount of $96,000,while Madrid reported interest income of $94,000 for the same bonds.What is Carlson's share of consolidated net income?

A) $2,064,000.
B) $2,066,000.
C) $2,176,000.
D) $2,207,000.
E) $2,317,000.