Use the Following Information to Answer the Question(s)below

question 27

Multiple Choice

Use the following information to answer the question(s) below.
Plenty Corporation issued six thousand,$1,000 par,6% bonds on January 1,2010,at par.Interest is paid on January 1 and July 1 of each year;the bonds mature on January 1,2015.On January 2,2012,Scrawn Corporation,a 75%-owned subsidiary of Plenty,purchased 3,000 of the bonds on the open market at 102.50.Plenty's separate net income for 2012 included the annual interest expense for all 3,000 bonds.Scrawn's separate net income for 2012 was $400,000,which included the bond interest received on July 1 as well as the accrual of bond interest revenue earned on December 31.Both companies use straight-line amortization of bond discounts/premiums.
-Using the original information,the balances for the Bonds Payable and Bond Interest Payable accounts,respectively,on the consolidated balance sheet for December 31,2013 were

• A)$3,000,000 and $ 90,000.
• B)$3,000,000 and $180,000.
• C)$6,000,000 and $ 90,000.
• D)$6,000,000 and $180,000.

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Definitions:

Financial Knowledge

The understanding of various financial principles, products, and services, enabling effective money management and investment decisions.

Intermittent Reinforcement

A conditioning schedule in which a behavior is reinforced at irregular intervals, leading to stronger and more resilient behavioral responses.

Continuous Reinforcement

A conditioning schedule where every correct or desired response is followed by a reward, encouraging repeated behavior.

Generic Influence Tactics

Broad strategies employed by individuals or groups to persuade or motivate others towards achieving a specific action or outcome.