4. Which special purpose entities must be consolidated 5. Who is required to consolidate a variable interest entity 6. What are the criteria to determine if a primary beneficiary exists 2. Apple owns 80% of Pear. Apple had a bond payable outstanding on January 1,2010 with a book value of $212,000. Pear purchases the bond in the open market for $199,000. How much is the gain or loss on retirement of the bond (show your calculation). 3. Same facts as #2 with Pear reporting interest income of $22,000 and Apple reporting interest expense of $21,000. How much is consolidated income in 2010. 4. Which special purpose entities must be consolidated 5. Who is required to consolidate a variable interest entity 6. What are the criteria to determine if a primary beneficiary exists