On January 1, 20x2. Penn Co (parent) purchased 90% of the outstanding common shares of Senn Co. (Subsidiary). On January 2, 20x2, Senn Co purchased $20,000 face amount 8% of bond of Penn Co from outside Investors for $18,000 to yield 10% (market rate) Theses bonds had been issued at par (lace amount $20,000) by Penn Co Senn Co. intends to hold the bonds until maturity Senn Co reported net income of $5.000 and Penn Company reported separate income $8,000 during 20x2. Interests are paid annually Senn Co. uses effective interest method for interest Income calculation Q1. Please complete the following consolidation entry of December 31, 20x2. (6 points) Account Debit Credit Interest Income Bonds payable Interest expense Investment in Penn Bond Gain on retirment Q2. What is the consolidated net income? (5.5 points) Essay Toolbar navigation BIVS 3 IN M !!! A