Stang Corporation issued to Bradley Company \(\$ 400,000\) par value, 10 -year bonds with a coupon rate of 12 percent on January \(1,20 \mathrm{X} 5\), at 105 . The bonds pay interest semiannually on July 1 and January 1. On January 1, 20X8, Purple Corporation purchased \(\$ 100,000\) of the bonds from Bradley for \(\$ 104.900\).

Purple Corporation owns 65 percent of the voting common shares of Stang Corporation and prepares consolidated financial statements.

\section*{Required}

a. Prepare the workpaper eliminating entry or entries needed to remove the effects of the intercorporate bond ownership in preparing consolidated financial statements for 20X8.

b. Assuming Stang Corporation reports net income of \(\$ 20,000\) for \(20 \times 8\), compute the amount of income assigned to noncontrolling shareholders in the \(20 \mathrm{X} 8\) consolidated income statement.

c. Prepare the workpaper eliminating entry or entries needed to remove the effects of the intercorporate bond ownership in preparing consolidated financial statements for 20X9.