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Duncan Inc

question 12

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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?


Definitions:

Reform Socialists

Advocates a peaceful, evolutionary transition of society to socialism through legal and political reforms rather than revolutionary upheaval.

Anarchism

A political philosophy that advocates self-governed societies based on voluntary, cooperative institutions and the rejection of all involuntary, coercive forms of hierarchy.

Bakunin

Mikhail Bakunin was a Russian revolutionary anarchist, socialist and founder of collectivist anarchism.

Kropotkin

Kropotkin refers to Peter Kropotkin (1842-1921), a Russian activist, scientist, and anarchist philosopher renowned for his advocacy of anarchism and mutual aid.

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