Mega Corporation purchased 90 percent of the voting common shares of Tarp Company on January 1, 20X2 at underlying book value. Mega also purchased \(\$ 100,000\) of 6 percent five-year bonds directly from Tarp on January 1, 20X2, for \(\$ 104,000\). The bonds pay interest semiannually on July 1 and January 1. Trial balances of the companies as of December 31, 20X4, are as follows:

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a. Record the journal entry or entries for 20X4 on the books of Mega Corporation related to its investment in Tarp Company common stock.

b. Record the journal entry or entries for 20X4 on the books of Mega Corporation related to its investment in Tarp Company bonds.

c. Record the journal entry or entries for \(20 \times 4\) on the books of Tarp Company related to its bonds payable.

d. Prepare the elimination entries needed to complete a consolidated workpaper for \(20 \times 4\).

e. Prepare a three-part consolidated workpaper for 20X4.

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Mega Corporation Item Cash and Accounts Receivable Inventory Buildings and Equipment Investment in Tarp Company Stock Investment in Tarp Debit Credit $ 22,000 165.000 400.000 Debit Tarp Company $ 36.600 75.000 240,000 Credit 121,500 Company Bonds 101,600 Cost of Goods Sold 86,000 Depreciation Expense 20.000 Interest Expense 16.000 Dividends Declared 30.000 79,800 15,000 5.200 20,000 Accumulated Depreciation Accounts Payable $140,000 92,400 $ 80.000 Bonds Payable 200,000 Bond Premium Common Stock 120.000 35,000 100,000 1.600 80.000 Retained Earnings 242,000 Sales 140.000 50,000 125.000 Interest Income Income from Subsidiary 5.200 22.500 $962,100 $962,100 $471.600 $471,600