Exercise 8-9A (Static) Retirement of Bonds Sold at a Discount (Straight-Line Method) LO 8-3 Packed Corporation owns 70 percent of Snowball Enterprises' stock. On January 1,201, Packed sold $1 million par value 7 percent (paid semiannually), 20-year, first mortgage bonds to Kling Corporation at 97 . On January 1, 20X8, Snowball purchased $300,000 par value of the Packed bonds directly from Kling for $296,880. Note: Assume using straight-line amortization of bond discount or premium. Required: Prepare the consolidation entry needed at December 31,208, to remove the effects of the intercorporate bond ownership in preparing consolidated financial statements. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)