Campbell Inc

question 40

Multiple Choice

Campbell Inc. owned all of Gordon Corp. For 2011, Campbell reported net income (without consideration of its investment in Gordon) of $280,000 while the subsidiary reported $112,000. The subsidiary had bonds payable outstanding on January 1, 2011, with a book value of $297,000. The parent acquired the bonds on that date for $281,000. During 2011, Campbell reported interest income of $31,000 while Gordon reported interest expense of $29,000. What is consolidated net income for 2011?

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

---

Definitions:

Peripheral Nervous System

The part of the nervous system outside the brain and spinal cord, including all the nerves that branch out to the rest of the body.

Somatic...Autonomic

Refers to the distinction between the somatic nervous system that controls voluntary movements and the autonomic nervous system that regulates involuntary body functions.

Sympathetic...Parasympathetic

Components of the autonomic nervous system, with the sympathetic division preparing the body for stress or emergency situations, while the parasympathetic division promotes relaxation and recovery.

Primary Somatosensory Cortex

The region of the brain responsible for processing tactile information from the body, located in the parietal lobes.