On January 1, 2018, Jay Company acquired all the outstanding ownership shares of Zee Company. In ass

/in /by

On January 1, 2018, Jay Company acquired all the outstanding ownership shares of Zee Company. In assessing Zee’s acquisition-date fair values, Jay concluded that the carrying value of Zee’s long-term debt (8-year remaining life) was less than its fair value by $19,200. At December 31, 2018, Zee Company’s accounts show interest expense of $14,350 and long-term debt of $350,000. What amounts of interest expense and long-term debt should appear on the December 31, 2018, consolidated financial statements of Jay and its subsidiary Zee? Interest expense Long-term debt a. $16,750 $369,200 b. $16,750 $366,800 c. $11,950 $369,200 d. $11,950 $366,800

Multiple Choice

Option A

Option B

Option C

Option D