Pickle Incorporated acquired a $10,000 bond originally issued by its 80%-owned subsidiary on January 2,2013.The bond was issued in a prior year for $11,250,matures January 1,2018,and pays 9% interest at December 31.The bond's book value at January 2,2013 is $10,625,and Pickle paid $9,500 to purchase it.Straight-line amortization is used by both companies.How much interest income should be eliminated in 2013?

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The Answer of Pickle Incorporated acquired a $10,000 bond originally issued by its 80%-owned subsidiary on January 2,2013.The bond was issued in a prior year for $11,250,matures January 1,2018,and pays 9% interest at December 31.The bond's book value at January 2,2013 is $10,625,and Pickle paid $9,500 to purchase it.Straight-line amortization is used by both companies.How much interest income should be eliminated in 2013?

Pickle Incorporated Acquired a $10,000 Bond Originally Issued by Its