Consolidation procedures for constructive retirement of affiliate debt acquired from non-affiliate - Equity Method Assume that on January 1, 2020, a Parent company issued to an unaffiliated company a 12-year, 7% bond with a par value of $800,000 for $752,000. Interest is paid annually on December 31. On December 31, 2021 an affiliated Subsidiary purchased $640,000 (face) of the bonds for $665,600. In addition, on January 1, 2022, the Subsidiary had common stock of $480,000 and retained earnings for $200,000. The Parent owns 75% of the Subsidiary, and it is consolidated by the parent as a voting interest entity. there is no acquisition accounting premium (AAP) associated with the Parent's investment in the Subsidiary. Both companies use the straight-line amortization of bond premiums and discounts. The Parent and Subsidiary reported the following (pre-consolidation) income from their own operations (i.e. prior to any equity method adjustments by the Parent company), but after recording interest income and interest expense: NI 2021 - 400,000 (Parent); 288,000 (Sub) NI 2016 - 432,000 (Parent); 304,000 (Sub) The Subsidiary also declared and paid a $80,000 cash dividend in each year, 2021 and 2022. The Parent uses the equity method of pre-consolidation investment bookkeeping. Prepare the consolidation entries for the year ended December 31, 2022.