Dundee Company issued $$1,000,000$ face $($i$.$e$.,$ par$)$ value $10-$year bonds at $102$ on January $1,20$X$5,$ which Mega Corporation purchased. The coupon rate on the bonds is $9$ percent. Interest payments are made semiannually on July $1$ and January $1.$ On July $1,20$X$8,$ Perth Company purchased $$500,000$ face value of the bonds from Mega for $$492,200.$ Perth owns $65\%$ of Dundee's voting common stock shares.

a$.$ What amount of gain or loss on the constructive retirement of bonds will be reported in Dundee's or Perth$’$s own separate income statement for $20$X$8?$ Why or why not?

b$.$Will a gain or loss on the constructive retirement of bonds be reported in the $20$X$8$ consolidated financial statements If so$,$ what amount of constructive retirement gain or loss will be reported on the constructive retirement? Show your computations in good form.

c$.$ How much will Perth's purchase of the bonds affect $($including the effects of constructive retirement and any reversal due to elimination of interest income$/$expense$)$ consolidated net income for $20$X$8?$ Show your computations in good form$’$

d$.$ Prepare the worksheet consolidation entries $($two entries$)$ needed to remove the effects of the intercorporate bond ownership in preparing consolidated financial statements at December $31,20$X$8$

e$.$ Prepare the worksheet consolidation entries $($two entries$)$ needed to remove the effects of the intercorporate bond ownership in preparing consolidated financial statements at December $31,20$X$9.$