Chapter 6 11 . Fargus Corporation owned 51% of the voting common stock of Sanatee, Inc. The parent's interest was acquired several years ago on the date that the subsidiary was formed. Consequently, no goodwill or other allocation was recorded in connection with the acquisition price. On January 1, 2010, Sanatee sold $1,400,000 in ten-year bonds to the public at 108. The bonds pay a 10% interest rate every December 31, Fargus acquired 40% of these bonds on January 1 , 2012, for 95% of the face value. Both companies utilized the straight-line method of amortization. What would be the consolidated totals for the following at the end of December 31, 2014 as it relates to these bonds: (12 points- 3 points each) Investment in Bonds: Bonds Payable: Discount OR Premium on Bonds Payable (Circle the appropriate account): Interest Expense