Carlson, Inc

question 112

Multiple Choice

Carlson, Inc. owns 80 percent of Madrid, Inc. Carlson reports net income for 2013 (without consideration of its investment in Madrid, Inc.) of $1,500,000. For the same year, Madrid reports net income of $705,000. Carlson had bonds payable outstanding on January 1, 2013 with a carrying value of $1,200,000. Madrid acquired the bonds on the open market on January 3, 2013 for $1,090,000. For the year 2013, Carlson reported interest expense on the bonds in the amount of $96,000, while Madrid reported interest income of $94,000 for the same bonds. What is Carlson's share of consolidated net income?

• A) $2,064,000.
• B) $2,066,000.
• C) $2,176,000.
• D) $2,207,000.
• E) $2,317,000.

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Definitions:

Severed Cerebellum

A condition involving damage to or disconnection of the cerebellum, a part of the brain that plays a significant role in motor control and coordination.

Thalamus

The thalamus is a vital brain structure acting as a relay station for sensory information, channeling incoming data to appropriate areas of the brain for processing.

Sensory Information

Data received by the senses (sight, hearing, touch, taste, and smell), which is then interpreted by the brain to form an understanding of the world.

Neurons

Within the nervous system, there are specialized cells responsible for carrying information to other neurons, muscles, or glandular cells.