Tyson Co., a holder of a $2,000,000 Penn Co. bond, collected…
Tyson Co., a holder of a $2,000,000 Penn Co. bond, collected the interest due on June 30, 20×4, and then sold the bond to Senn Co. for $ 1,920,000. On that date. Penn Co, an 80% owner of Senn Co., had a $ 2,085,000 carrying amount for this bond. What was the effect of Senn Co’s purchase of Penn Co’s bond on the consolidated income and income to noncontrolling interest amounts reported in Penn Co’s June 30, 20×4, consolidated income statement? (Hint: Downstream) Effect Choices Option Consolidated Income Income to Non-controlling Interest(NCI in NI) A. $132,000 increase $33,000 increase B. $165,000 increase $0 C. $0 $33,000 increase D. $0 $165,000 increase