A corporation owns $70\%$ of B corporation's voting shares. On January $1.20$x$3,$ B sold bonds with a par value of $$600,000$ at $98.$ A corporation purchased $400,000$ par value of the bonds; the remainder was sold to nonaffiliates. The bonds mature in $5$ years and pay an annual interest rate of $8$ percent interest is paid semiannually on January $1$ and July $1.$

a$)$ What amount of interest expense should be reported in the $20$X$4$ consolidated income statement?

b$)$ prepare the journal entries A recorded during $20$X$4$ with regard to its investment in B Bonds.