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

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Accounting

Highlight, Inc., owns all outstanding stock of Kiort Corporation. The two companies report the following balances for the year ending December 31, 2020:

Highlight Kiort
Revenues and interest income $ (670,000 ) $ (390,000 )
Operating and interest expense 540,000 221,000
Other gains and losses (120,000 ) (32,000 )
Net income $ (250,000 ) $ (201,000 )

Note: Parentheses indicate a credit balance.

On January 1, 2020, 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 carrying amount of $84,000 (based on an effective rate of 11 percent).

Determine the balances that should appear on a consolidated income statement for 2020.image

\begin{tabular}{|l|l|} \hline & Amount \\ \hline Revenues and interest income & \\ \hline Operating and interest expense & \\ \hline Other gains and losses & \\ \hline Gain (loss) on retirement of debt & \\ \hline Net income & \\ \hline \end{tabular}

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