Apple Corporation holds 60 percent of the voting shares of Shortway Publishing Company. Apple Corporation issued \(\$ 500,000\) of 10 percent bonds with a 10 -year maturity on January 1, 20X2, at 90. On January 1, 20X8, Shortway Publishing Company purchased \(\$ 100,000\) of the Apple Corporation bonds for \(\$ 108,000\). Partial trial balances for the two companies on December 31, 20X8, are as follows:

\section*{Required}
Prepare the workpaper eliminating entry or entries needed on December \(31,20 \times 8\), to remove the effects of the intercorporate bond ownership in preparing consolidated financial statements.

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Investment in Shortway Publishing Company Stock Investment in Apple Corporation Bonds Bonds Payable Discount on Bonds Payable Interest Expense Interest Income Interest Payable Interest Receivable Apple Corporation Shortway Publishing Company $141.000 $106,000 500.000 15.000 55,000 8,000 25.000 5.000