Bliss Perfume Company issued \(\$ 300,000\) of 10 percent bonds on January 1, 20X2, at 110. The bonds mature 10 years from issue and have semiannual interest payments on January 1 and July 1. Parsons Corporation owns 80 percent of the stock of Bliss Perfume Company. On April 1, 20X4, Parsons Corporation purchased \(\$ 100,000\) par value of Bliss Perfume bonds in the securities markets.

Partial trial balances for the two companies on December 31, 20X4, are as follows:

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a. What was the purchase price of the Bliss Perfume Company bonds to Parsons Corporation?

b. What amount of gain or loss on bond retirement should be reported in the consolidated income statement for \(20 \times 4\) ?

c. Prepare the necessary workpaper eliminating entries as of December \(31.20 \mathrm{X} 4\), to remove the effects of the intercorporate bond ownership.

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Investment in Bliss Perfume Company Bonds Interest Income Interest Receivable Bonds Payable Bond Premium Interest Expense Interest Payable Parsons Corporation Bliss Perfume Company $105.600 6.900 5.000 $300,000 21.000 27,000 15.000