Joey Corporation issued to the public $400,000 par value 10-year bonds with a stated rate of 12 percent on January 1, 2014, at 105. The bonds pay interest semiannually on July 1 and January 1. On January 1, 2017, Legoria Corporation purchased $100,000 of the bonds for $104,900. Legoria Corporation owns 100 percent of the voting shares of Joey Corporation and prepares Consolidated Financial Statements. Both Joey and Legoria Corporation use Straight-Line Amortization.

Required:

1) Prepare the Consolidation entry/entries needed to remove the effects of the inter-corporate bond ownership in preparing Consolidated Financial Statements for 12/31/2017.