Question
Packed Corporation owns 60 percent of Snowball Enterprises stock. On January 1, 20X1, Packed sold $1.18 million par value, 6 percent (paid semiannually), 20-year, first
Packed Corporation owns 60 percent of Snowball Enterprises stock. On January 1, 20X1, Packed sold $1.18 million par value, 6 percent (paid semiannually), 20-year, first mortgage bonds to Kling Corporation at 97. On January 1, 20X8, Snowball purchased $354,000 par value of the Packed bonds directly from Kling for $351,980. Required: Prepare the consolidation entry needed at December 31, 20X8, to remove the effects of the intercorporate bond ownership in preparing consolidated financial statements. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations. Round your final answers to nearest whole dollar.
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