Bundle Company issued \(\$ 500,000\) par value 10 -year bonds at 104 on January 1, 20X3, which were purchased by Mega Corporation. The coupon rate on the bonds is 11 percent. Interest payments are made semiannually on July 1 and January 1. On July 1, 20X6, Parent Company purchased \(\$ 200,000\) par value of the bonds from Mega Corporation for \(\$ 192.200\). Parent Company owns 70 percent of the voting shares of Bundle Company.

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a. What amount of gain or loss will be reported in Bundle's 20X6 income statement on the retirement of bonds?

b. Will a gain or loss be reported in the 20X6 consolidated financial statements for Parent Company for the constructive retirement of bonds? What amount will be reported?

c. How much will the purchase of the bonds by Parent Company change consolidated net income for 20X6?

d. Prepare the workpaper eliminating entry or entries needed to remove the effects of the intercorporate bond ownership in preparing consolidated financial statements at December 31, 20X6.

e. Prepare the workpaper eliminating entry or entries needed to remove the effects of the intercorporate bond ownership in preparing consolidated financial statements at December 31, \(20 \times 7\).

f. If Bundle Company reports net income of \(\$ 50,000\) for \(20 \times 7\), what amount of income will be assigned to the noncontrolling interest in the consolidated income statement?