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

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Accounting

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Highlight, Inc, owns all outstanding stock of Kiort Corporation. The two companies report the following balances for the year ending December 31, 2017: Revenues and interest income (670,000) (390, 000) 221,000 (32,000]) $ (250, 000) (201,000) Operating and interest expense 540,000 Other gains and losses Net income (120,000) Note: Parentheses indicate a credit balance. On January 1, 2017, 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 book value of $84,000 (based on an effective rate of 11 percent). Determine the balances that should appear on a consolidated income statement for 2017 Re

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