Assume that a Parent company owns 100 percent of its Subsidiary. On January 1, 2019, the Parent company had $960,000 of bonds payable (par) outstanding
with a carrying value of $1,008,000. The bonds were originally issued to an unaffiliated company. On that same date, the Subsidiary acquired the bonds for
$950,400. During 2019, the Parent company reported $432,000 of (pre-consolidation) income from its own operations (i.e., prior to any equity method
adjustments by the Parent company) and after recording interest expense. The Subsidiary reported $240,000 of (pre-consolidation) income from its own
operations after recording interest income. Related to the bonds during 2019, the parent reported interest expense of $108,000 while the subsidiary reported
interest income of $98,400. Determine the following amounts that will appear in the 2019 consolidated income statement:
Note: If no amount will appear on the consolidated income statement, enter zero. If item c. is a loss, use a negative sign with your answer