Ch 06 P-30 0 Saved Several years ago Brant, Inc., sold $960,000 in bonds to the public. Annual cash interest of 7 percent ($67,200) was to be paid on this debt. The bonds were issued at a discount to yield 10 percent. At the beginning of 2016, Zack Corporation (a wholly owned subsidiary of Brant) purchased $160,000 of these bonds on the open market for $181,000, a price based on an effective interest rate of 5 percent. The bond liability had a carrying amount on that date of $840,000. Assume Brant uses the equity method to account internally for its investment in Zack. points a. & b. What consolidation entry would be required for these bonds on December 31, 2016 and December 31, 2018? (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Round your intermediate answers to nearest whole number.) eBook Print view transaction list References Consolidation Worksheet Entries 1 2 Prepare Entry B to eliminate the intra-entity debt holdings and to recognize the loss on retirement. Note: Enter debits before credits. Debit Credit Date Accounts December 31, 2016 Bonds payable Interest income Loss on retirement of debt Investment in bonds Record entry Clear entry view consolidation entries view transaction list Consolidation Worksheet Entries