Nell, single and age 38, had the following income and expense items in nonbusiness bad debt $ 6,000 business bad debt 2,000 nonbusiness long-term capital gain 4,000 nonbusiness short-term capital loss 3,000 salary 50,000 interest income 3,000 determine nell's agi for 2016.

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 $21,600. at december 31, 2018, zee company's accounts show interest expense of $14,440 and long-term debt of $380,000. 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? long-term debt $401,600 $398,900 $401,600 $398,900 interest expense $17,140 $17,140 $11,740 $11,740 a. b. c. d.