3, M acquired 70% of the outstanding voting stock of S on January 1, 2013 when the fair values equaled the book values. S acquired at 101 on January 1, 2013 half of the $2,000,000 of bonds originally issued by M on January 1, 2008. The bonds were issued at a stated rate of 5% for 10 years, for $1,920,000. Assume that both M and S will use the straight-line method for any bond- related amortization. Annual interest is paid on December 31. In addition, during 2014 S sold inventory costing $1,000 to M for $1,500 with 60% of the inventory resold by M in 2014 and 30% resold in 2015. Assume M reported income from its own operations of $100,000 in 2013, $120,000 in 2014 and 130,000 in 2015, S reported net income of S50,000 in 2013, 580,000 in 2014 and 90,000 in 2015 Required A. Prepare the consolidating entries related to the intercompany inventory sales and the intercorporate bonds required for the consolidating worksheet for the years ended December 31, 2013 through December 31, 2015 1) 12/31/13 2) 12/31/14 3) 12/31/1:5 3, M acquired 70% of the outstanding voting stock of S on January 1, 2013 when the fair values equaled the book values. S acquired at 101 on January 1, 2013 half of the $2,000,000 of bonds originally issued by M on January 1, 2008. The bonds were issued at a stated rate of 5% for 10 years, for $1,920,000. Assume that both M and S will use the straight-line method for any bond- related amortization. Annual interest is paid on December 31. In addition, during 2014 S sold inventory costing $1,000 to M for $1,500 with 60% of the inventory resold by M in 2014 and 30% resold in 2015. Assume M reported income from its own operations of $100,000 in 2013, $120,000 in 2014 and 130,000 in 2015, S reported net income of S50,000 in 2013, 580,000 in 2014 and 90,000 in 2015 Required A. Prepare the consolidating entries related to the intercompany inventory sales and the intercorporate bonds required for the consolidating worksheet for the years ended December 31, 2013 through December 31, 2015 1) 12/31/13 2) 12/31/14 3) 12/31/1:5