Cost paid to retire	$ 251,500.00
Book vlaue of bonds retired	$(247,500.00)
Constructive Loss on Bond Retirement	$ 4,000.00
Son's Reported Income	$ 4,900.00
Constructive Loss	$ (2,800.00)
Recognition of Constructive Loss	$ 700.00
Income from Son Allocated to Parent	$ 2,800.00

Please give the year 1 consolidated statement and other necessary entries.

year 1 should be something like...

Bonds Payable
Interest Income
Loss			$ 4,000.00
	Interest Expense
	Investment in bonds

OR

Loss on retirement			$ 4,000.00
interest payable
interest income
bonds payable
	Investment in Son
	Interest receivable
	Interest expense

ended December 31, 2019. E 7-6 Parent purchases subsidiary bonds Pat Corporation owns a 70 percent interest in Son Corporation acquired several years ago at book value equal to fair value. On January 1,2011, Son had outstanding $500,000 of 9 percent bonds with a book value of $495,000. On Janu- ary 2, 2011, Pat purchased $250,000 of Son's 9 percent bonds for $251,500. The bonds are due on January 1, 2015, and pay interest on January 1 and July 1 REQUIRED 1. Determine the gain or loss on the constructive retirement of Son's bonds. 2. Son reports net income of $7,000 for 2011. Determine Pat's income from Sorn