Light Corporation owns 80 percent of Sound Company's voting shares. On January 1, 20X7, Sound sold bonds with a par value of $300,000 when the market rate was 7 percent. Light purchased two thirds of the bonds; the remainder was sold to nonaffiliates. The bonds mature in ten years and pay an annual interest rate of 6 percent. Interest is paid semiannually on June 30 and Dec 31.
Based on the information given above, what amount of interest income will Light Corporation recognize on December 31, 20X8 relative to the interest received on that day, in its separate financial statements?

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The Answer of Light Corporation owns 80 percent of Sound Company's voting shares. On January 1, 20X7, Sound sold bonds with a par value of $300,000 when the market rate was 7 percent. Light purchased two thirds of the bonds; the remainder was sold to nonaffiliates. The bonds mature in ten years and pay an annual interest rate of 6 percent. Interest is paid semiannually on June 30 and Dec 31.
Based on the information given above, what amount of interest income will Light Corporation recognize on December 31, 20X8 relative to the interest received on that day, in its separate financial statements?

Light Corporation Owns 80 Percent of Sound Company's Voting Shares