Duncan Inc

question 12

Multiple Choice

Duncan Inc. owned all of the outstanding stock of Brandt Co. The subsidiary had bonds payable outstanding on January 1, 2020, with a book value of $270,000. The parent acquired the bonds on that date for $291,000. Subsequently, Duncan reported interest income of $26,000 in 2020 while Brandt reported interest expense of $31,000. Consolidated financial statements were prepared for 2021. What adjustment would be required for the retained earnings balance as of January 1, 2021?

• A) Reduction of $5,000.
• B) Reduction of $16,000.
• C) Reduction of $26,000.
• D) Reduction of $31,000.
• E) Reduction of $57,000.

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Definitions:

Fear Appeal

A marketing strategy that uses the element of fear to motivate the audience to take a certain action or adopt a specific behavior.

Tune Out

The act of ignoring or choosing not to engage with a message, advertisement, or piece of content.

Viewing by Children

Viewing by children pertains to monitoring and managing the content accessible to children on television, the internet, and other digital platforms to ensure it is appropriate for their age group.

Consumers

Individuals or groups who purchase goods and services for personal use or consumption.