Mom Corporation Acquired 75 Percent of Daughter Company's Voting Shares

Mom Corporation acquired 75 percent of Daughter Company's voting shares on January 1, 20X7, at underlying book value. On December 31, 20X7, it also purchased $300,000 par value 9 percent Daughter bonds, which had been issued on January 1, 20X3 to Parry Corporation (unaffiliated with either Mom or Daughter) at a $20,000 premium. The bonds were originally issued with a 10-year maturity and pay interest annually on December 31. During preparation of the consolidated financial statements for December 31, 20X7, the following consolidation entry was included in the consolidation worksheet:

-Based on the information given above,what was the carrying amount of the bonds on Daughter's books on the date of purchase by Mom?

A) $300,000
B) $311,902
C) $312,098
D) $324,000