Kruse Corporation holds 75 percent of the voting common shares of Garys Ice Cream Parlors. On January 1, 20X6, Garys purchased $50,000 par value, 10 percent first mortgage bonds of Kruse from Cane for $58,000. Kruse originally issued the bonds to Cane on January 1, 20X4, for $53,000. The bonds have a 10-year maturity from the date of issue and pay interest semiannually. The bonds are accounted for using straight-line amortization of premiums and discounts. Garys reported net income of $20,000 for 20X6, and Kruse reported income (excluding income from ownership of Garys stock) of $40,000.

What amount of interest income does Garys Ice Cream Parlors record for 20X6?

What gain or loss on the retirement of bonds should be reported in the 20X6 consolidated income statement?

What amount of consolidated net income should be reported for 20X6?