On December 31, 2016, Snoopy, a subsidiary of Peanuts, issued $2,000,000 4% five-year bonds with interest payable annually to Linus Lending, an unaffiliated entity. The bonds are issued at a discount to yield 5%. On December 31, 2018, Peanuts purchased the bonds from Linus Lending after the market rate of interest has risen to 6%.

Assume that Peanuts uses the equity method to account for its investment in Snoopy. Also, assume that both companies use the effective interest method to amortize premiums and discounts on bonds payable.

Initial issuance amortization schedule

Date	Cash	Expense	Amortization	Discount	CV
12/31/16					$1,913,410
12/31/17	$80,000	$95,671	$15,671	$70,919	$1,929,081
12/31/18	$80,000	$96,454	$16,454	$54,465	$1,945,535
12/31/19	$80,000	$97,277	$17,277	$37,188	$1,962,812
12/31/20	$80,000	$98,141	$18,141	$19,048	$1,980,952
12/31/21	$80,000	$99,048	$19,048	$0	$2,000,000

Repurchase amortization schedule

Date	Cash	Revenue	Amortization	Discount	CV
12/31/18					$1,893,080
12/31/19	$80,000	$113,585	$33,585	$73,336	$1,926,664
12/31/20	$80,000	$115,600	$35,600	$37,736	$1,962,264
12/31/21	$80,000	$117,736	$37,736	$0	$2,000,000

Required: (1) Record the issuance of the bonds by Snoopy on 12/31/2016. (2) Record the purchase of the bonds by Peanuts on 12/31/2018. (3) Record the consolidation entries at December 31, 2018 and December 31, 2019 related to the bonds. If any additional entry was made by the parent related to the bond repurchase in 2018 because it used the equity method, record that entry.