Sweetness Corporation is 70% owned by Passion Limited. At the beginning of 2005, Sweetness issued $1,000,000 in 12%, 10-year bonds for $958,000. On December 31, 2008, Passion purchased 50% of the bonds from their original buyer for $479,000. Passion reports the bond investment as a long-term investment. Both companies calculate amortization on a straight-line basis.

Required:
Construct the eliminating entry for the bonds (including interest) at the following dates, first using the agency approach and then using the par-value method:

a. December 31, 2008

b. December 31, 2010

c. December 31, 2014