Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik

Exercise 25

Jordan, Inc., owns Fey Corporation.For 2011, Jordan reports net income (without consideration of its investment in Fey) of $200,000 and the subsidiary reports $80,000.The parent had a bond payable outstanding on January 1, 2011, with a book value of $212,000.The subsidiary acquired the bond on that date for $199,000.During 2011, Jordan reported interest expense of $22,000 while Fey reported interest income of $21,000.What is the consolidated net income
a.$266,000.
b.$268,000.
c.$292,000.
d.$294,000.