Kearns Incorporated owned all of Burke Corporation. For 2024, Kearns reported net income (without consideration of its investment in Burke) of $350,000 while the subsidiary reported $127,000. There are no excess amortizations associated with this consolidation. The subsidiary had bonds payable outstanding on January 1, 2024, with a book value of $303,000. The parent acquired the bonds on that date for $285,000. During 2024, Kearns reported interest income of $32,000 while Burke reported interest expense of $29,000. What is consolidated net income for 2024? Multiple Choice $498,000 $462,000 $456,000

Kearns Incorporated owned all of Burke Corporation. For 2024, Kearns reported net income (without consideration of its investment in Burke) of $350,000 while the subsidiary reported $127,000. There are no excess amortizations associated with this consolidation. The subsidiary had bonds payable outstanding on January 1, 2024, with a book value of $303,000. The parent acquired the bonds on that date for $285,000. During 2024, Kearns reported interest income of $32,000 while Burke reported interest expense of $29,000. What is consolidated net income for 2024? Multiple Choice $498,000 $462,000 $456,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Multiple Choice
Kearns Incorporated owned all of Burke Corporation. For 2024, Kearns reported net income (without consideration of its investment in Burke) of
$350,000 while the subsidiary reported $127,000. There are no excess amortizations associated with this consolidation. The subsidiary had bonds
payable outstanding on January 1, 2024, with a book value of $303,000. The parent acquired the bonds on that date for $285,000. During 2024,
Kearns reported interest income of $32,000 while Burke reported interest expense of $29,000. What is consolidated net income for 2024?
$498,000
$462,000
$456,000
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