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Purse Corporation owns 70 percent of Scarf Company's voting shares. On January 1, 20X3, Scarf sold bonds with a par value of $697,500 at 98 . Purse purchased $465,000 par value of the bonds; the remainder was sold to nonaffillates. The bonds mature in five years and pay an annual interest rate of 8 percent. Interest is paid semiannually on January 1 and July 1. Required: a. What amount of Interest expense should be reported in the 204 consolidated Income statement? b. Prepare the journal entries Purse recorded during 204 with regard to its Investment in Scarf bonds. c. Prepare all worksheet consolidation entries needed to remove the effects of the intercorporate bond ownership in preparing consolidated financial statements for 204 Complete this question by entering your answers in the tabs below. What amount of interest expense should be reported in the 204 consolidated income statement? Note: Do not round your intermediate calculations. Round your final answer to nearest whole dollar. Complete this question by entering your answers in the tabs below. Prepare the journal entries Purse recorded during 204 with regard to its investment in Scarf bonds. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations. Round your final answers to nearest whole dollar. 1 Record the interest received on the bonds. 2 Record the interest received on the bonds. 3 Record the interest receivable on the bonds. Prepare all worksheet consolidation entries needed to remove the effects of the intercorporate bond ownership in preparing consolidated financial statements for 204. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations, Round your final answers to nearest whole dollar. A Record the entry to eliminate the effects of the intercompany ownership in the bonds. B Record the entry to eliminate intercompany receivables or payables. ip in the