Able Company issued \(\$ 600,000\) of 9 percent first mortgage bonds on January 1. 20X1, at 103. The bonds mature in 20 years and pay interest semiannually on January 1 and July 1. Prime Corporation purchased \(\$ 400,000\) of Able's bonds from the original purchaser on December 31, 20X5, for \(\$ 397,000\). Prime Corporation owns 60 percent of Able's voting common stock.

\section*{Required}

a. Prepare the workpaper elimination entry or entries needed to remove the effects of the intercorporate bond ownership in preparing consolidated financial statements for 20X5.

b. Prepare the workpaper elimination entry or entries needed to remove the effects of the intercorporate bond ownership in preparing consolidated financial statements for 20X6.