waddington inc. owned all of the outstanding stock of convington co. the subsidiary had bonds payable outstanding on january 1, 2020, with a book value of $270,000. the parent acquired the bonds on that date for $291,000. subsequently, waddington reported interest income of $26,000 in 2020 while convington reported interest expense of $31,000. consolidated financial statements were prepared for 2021. what adjustment would be required for the retained earnings balance as of january 1, 2021? a) reduction of $5,000. b) reduction of $16,000. c) reduction of $26,000. d) reduction of $31,000. e) reduction of $57,000. a. b b. e c. d d. c e. a