5. Big Co owns 64% of Little Co common stock. On 1/1/2018, Little Co issued $300,000 of 11%, 18 year bonds on the open market at par. The bonds pay interest annually each 12/31. On 1/1/2022 Big purchased $100,000 of these bonds on the open market at 106% of face value Required: a. What was the gain or loss on the constructive retirement of these bonds? b. How much interest expense would be reported on the 2022 consolidated income statement? 64 11 Big's % owneship of Little stock Coupon rate on bonds Life of bonds Purchase price of bonds 18 106 5. Big Co owns 64% of Little Co common stock. On 1/1/2018, Little Co issued $300,000 of 11%, 18 year bonds on the open market at par. The bonds pay interest annually each 12/31. On 1/1/2022 Big purchased $100,000 of these bonds on the open market at 106% of face value Required: a. What was the gain or loss on the constructive retirement of these bonds? b. How much interest expense would be reported on the 2022 consolidated income statement? 64 11 Big's % owneship of Little stock Coupon rate on bonds Life of bonds Purchase price of bonds 18 106