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Sibling Company issued $$530,000$ par value, $10-$year bonds at $104$ on January $1,203,$ which Mega Corporation purchased. The coupon rate on the bonds is $12$ percent. Interest payments are made semiannually on July $1$ and January $1.$ Qn July $1,20$X$6,$ Parent Company purchased $$212,000$ par value of the bonds from Mega for $$204,200.$ Parent owns $70$ percent of Sibling's voting shares

Required:

a$.$ What amount of gain or loss will be reported in Sibling's $20$X$6$ income statement on the retirement of bonds?

b$.$ Will a gain or loss be reported in the $206$ consolidated financial statements for Parent for the constructive retirement of bonds? What amount will be reported?

c$.$ How much will Parent's purchase of the bonds change consolidated net income for $206?$

d$.$ Prepare the worksheet consolidation entry or entries needed to remove the effects of the intercorporate bond ownership in preparing consolidated financial statements at December $31,206.$

e$.$ Prepare the worksheet consolidation entry or entries needed to remove the effects of the intercorporate bond ownership in preparing consolidated financial statements at December $31,207.$

f$.$ If Sibling reports net income of $$53,000$ for $207,$ what amount of income will be assigned to the noncontrolling interest in the consolidated income statement?

Complete this question by entering your answers in the tabs below.

Required D $$ Required $F$

Will a gain or loss be reported in the $206$ consolidated financial statements for Parent for the constructive retirement of bonds? What amount will be reported?

Note: Do not round your intermediate calculations. Round your final answer to nearest whole dollar. Leave no cell blank $-$ be certain to enter $"0"$ wherever required.

Show less $4$

on bond retirement

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$7,800$