E8-3 Bond Sale at Discount (Effective Interest Method) LO 8-2 Purse Corporation owns 70 percent of Scart Company's voting shares. On January 1, 20x3. Scart sold bonds with a par value of 5712,500 at 98 . Purse purchased $475,000 par value of the bonds, the remainder was sold to nonalfilites. The bonds mature in five years and pay an annual interest rate of 8 percent. Interest is paid semiannually on January 1 and July 1. Required: a. What amount of interest expense should be reported in the 204 consolidated income siatement? (Do not round your intermediate ealculations. Round your fintal answer to noarest whole dollar.) b. Prepare the joumal entries Purse recorded during 204 with regard to is investment in 5carf bonds. (if no entry is required for a transaction/event, select "No joumal entry required" in the first account field. Do not round your intermediate calculations. Round your final answers to nearest whole dollar.) c. Prepare all worksheet consolidation entries needed to remove the effects of the intercorporate bond ownership in preparing consolidated financial statements for 204. (If no entry is required for a transactionlevent, select "No jourmal entry required" in the first account field. Do not round your intermediate calculations. Round your final answers to nearest whole dollar.)