On January 1, 20X6, Pepper Corporation issued 10-year bonds at par to unrelated parties. The bonds have a 10% stated rate, face value of $300,000, and pay interest every June 30 and December 31. On December 31, 20X9, Salt Corporation purchased all of Pepper's bonds in the open market at a $6,000 discount. Salt is Pepper's 80 percent owned subsidiary. Salt uses the effective interest method of amortization. The consolidated income statement for the year 20X9 should report with respect to the bonds: I. interest expense of $30,000. II. a gain of $6,000.

I. interest expense of $30,000

Explanation:

Since in the question it is mentioned that the face value is $300,000 and the rate of interest is 10%

So, the interest expense is

= $300,000 × 10%

= $30,000

Now the same would be presented in the consolidated income statement

Hence, the correct option is I

Also the gain would not be considered

muslims control the north africa during the period of 1500 up

to 1800. they made a barrier to prevent further european exploration from

entering the africa from the north. however, the dutch ware still able to move

toward the interior with having south africa as one of the routes leading to

the east for trading with asia.