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Business, 12.02.2021 03:50 janeou17xn

Highlight, Inc., owns all outstanding stock of Kiort Corporation. The two companies report the following balances for the year ending December 31, 2020: Highlight Kiort Revenues and interest income $ (670,000 ) $ (390,000 ) Operating and interest expense 540,000 221,000 Other gains and losses (120,000 ) (32,000 ) Net income $ (250,000 ) $ (201,000 ) Note: Parentheses indicate a credit balance. On January 1, 2020, Highlight acquired on the open market bonds for $108,000 originally issued by Kiort. This investment had an effective rate of 8 percent. The bonds had a face value of $100,000 and a cash interest rate of 9 percent. At the date of acquisition, these bonds were shown as liabilities by Kiort with a carrying amount of $84,000 (based on an effective rate of 11 percent). Determine the balances that should appear on a consolidated income statement for 2020. (Enter all amounts as positive amounts except for losses.)

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Highlight, Inc., owns all outstanding stock of Kiort Corporation. The two companies report the follo...
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