Campbell Inc

question 100

Multiple Choice

Campbell Inc.owned all of Gordon Corp.For 2018, Campbell reported net income (without consideration of its investment in Gordon) of $280,000 while the subsidiary reported $112,000.There are no excess amortizations associated with this consolidation.The subsidiary had bonds payable outstanding on January 1, 2018, with a book value of $297,000.The parent acquired the bonds on that date for $281,000.During 2018, Campbell reported interest income of $31,000 while Gordon reported interest expense of $29,000.What is consolidated net income for 2018?

• A) $406,000.
• B) $374,000.
• C) $378,000.
• D) $410,000.
• E) $394,000.

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Definitions:

SST

An abbreviation that can refer to several concepts depending on context, such as Sum of Squares Total in statistics, which measures the total variation in a dataset.

SSE

Sum of Squared Errors, a measure of the discrepancy between data points and a model's predictions, used in regression analysis.

Adjusted Value

A modification of a financial or statistical measure to reflect changes or to provide a more accurate overview.

Standard Error

A statistical measure that describes the accuracy with which a sample distribution represents a population, often used in inferential statistics to estimate how close the sample mean is to the population mean.