Lamar Corporation owns 60 percent of the voting shares of Humbolt Corporation. On January 1 . 20X2, Lamar Corporation sold \(\$ 150,000\) par value 6 percent first mortgage bonds to Humbolt for \(\$ 156,000\). The bonds mature in 10 years and pay interest seminannually on January 1 and July 1.

\section*{Required}

a. Prepare the journal entries for 20X2 for Humbolt Corporation related to its ownership of Lamar's bonds.

b. Prepare the journal entries for \(20 \times 2\) for Lamar Corporation related to the bonds.

c. Prepare the workpaper eliminating entries needed on December \(31,20 \times 2\), to remove the effects of the intercorporate ownership of bonds.