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

question 42

Multiple Choice

Use the following information to answer the question(s) below.

Poe Corporation owns an 80% interest in Seri Company acquired at book value several years ago. On January 2, 2013, Seri purchased $100,000 par of Poe's outstanding 10% bonds for $103,000. The bonds were issued at par and mature on January 1, 2016. Straight-line amortization is used. Separate incomes of Poe and Seri for 2013 are $350,000 and $120,000, respectively. Poe uses the equity method to account for the investment in Seri.

-Controlling interest share of consolidated net income for 2013 was

• A)$443,600.
• B)$444,000.
• C)$444,400.
• D)$448,000.

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