Vontkins Inc

question 100

Multiple Choice

Vontkins Inc. owned all of Quasimota Co. The subsidiary had bonds payable outstanding on January 1, 2012, with a book value of $265,000. The parent acquired the bonds on that date for $288,000. Subsequently, Vontkins reported interest income of $25,000 in 2012 while Quasimota reported interest expense of $29,000. Consolidated financial statements were prepared for 2013. What adjustment would have been required for the retained earnings balance as of January 1, 2013?

• A) reduction of $27,000.
• B) reduction of $4,000.
• C) reduction of $19,000.
• D) reduction of $30,000.
• E) reduction of $20,000.

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Definitions:

Celibacy

The practice of abstaining from marriage and sexual intercourse for religious or personal reasons.

Sexually Active

Engaging in sexual activities with one or more partners.

Nonsexual Affection

Expressions of care or love that do not involve sexual activity, such as hugging or kissing on the cheek.

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Citizens or nationals of the United States of America, characterized by a diverse population with a wide range of cultural, ethnic, and political backgrounds.