Corporation and subsidiary in the amount

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Pfadt Inc. had $600,000 par of 8% bonds payable outstanding on January 1, 2011 due January 1, 2015 with an unamortized discount of $12,000. Senat is a 90%-owned subsidiary of Pfadt. On January 2, 2011, Senat Corporation purchased $150,000 par value of Pfadt's outstanding bonds for $152,000. The bonds have interest payment dates of January 1 and July 1. Straight-line amortization is used.

Interest Expense appeared in the December 31, 2011 consolidated balance sheet of Pfadt Corporation and Subsidiary in the amount of

a) $3,000.

b) None of the others.

c) $36,000.

d) $38,250.

e) $48,000.

Reference no: EM133291484

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