I need some assistance on the following problem:

Purse Corporation owns $70$ percent of Scarf Company$$s voting shares. On January $1,20$X$3,$ Scarf sold bonds with a par value of $$667,500$ at $98.$ Purse purchased $$445,000$ par value of the bonds; the remainder was sold to nonaffiliates. 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:

$1.$ What amount of interest expense should be reported in the $20$X$4$ consolidated income statement?

$2.$ Prepare the journal entries Purse recorded during $20$X$4$ with regard to its investment in Scarf bonds.

$3.$ Prepare all worksheet consolidation entries needed to remove the effects of the intercorporate bond ownership in preparing consolidated financial statements for $20$X$4.$