Vontkins Inc

question 63

Multiple Choice

Vontkins Inc.owned all of Quasimota Co.The subsidiary had bonds payable outstanding on January 1, 2017, 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 2017 while Quasimota reported interest expense of $29,000.Consolidated financial statements were prepared for 2018.What adjustment would be required for the retained earnings balance as of January 1, 2018?

• 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:

Density Independent

Referring to factors that affect population sizes regardless of the population density, such as weather conditions or natural disasters.

Density Dependent

Factors whose effects on the size or growth of the population vary with the population density, such as availability of food, predation, disease, and migration.

Density Independent

Refers to any factor affecting population growth rates regardless of the population density.

Death Rate

The number of deaths in a particular population, scaled to the size of that population, per unit of time.