Pat Co has owned 90% of Sat Co since 2012. On January 1, 2019, Pat Co issued a $50,000 bond at a discount. The stated rate of interest on the bond was 8%. On December 31, 2024, there was unamortized bond discount of $5,000 showing on the Pat Co's books which is being amortized on a straight-line basis at an amount of $1,250 per year. On December 31, 2024, Sat Co purchased the entire bond issue (Face value $50,000) on the open market for $58,000. The bond will mature in four years. Interest is payable annually but in 2024, due to the purchase by Sat Co on December 31,2024, the interest was paid to the party from whom Sat Co purchased the bond and NOT Sat Co. Tax rate from 2019 - 2024 was 20%