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How much interest income will be reflected

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Question - Master Corporation owns 85 percent of Servant Corporation's voting shares. On January 1, 20X8, Master Corporation loaned $200,000 at 8 percent to Servant. During the year Servant paid $10,000 of interest and zero payments to the principle of the loan.

Based on the information given above, how much interest income will be reflected on the Consolidated Financial Statements at 12/31/20X8?

a. Zero

b. $16,000

c. $10,000

d. $6,000

Reference no: EM132739928

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