Perfecto Co. had $1,000,000 par of 8% bonds payable outstanding on January 1, 2020 due January 1, 2024 with an unamortized discount of $50,000. Sanana Co. is a 90%-owned subsidiary of Perfecto Co. On January 2, 2020. Sanana Co purchased half (50%) of par value of Perfecto's outstanding bonds at 102 on open market. The bonds have interest payment dates of January 1 and July 1. Straight-line amortization is used. 2. With respect to the bond purchase, the consolidated income statement of Perfecto Co. and Subsidiary for 2020 showed a gain or loss) of A. $ 10,000 B. ($ 35,000) C. $ 35,000 D. ($50,000) 3. Bond Interest Receivable for 2020 of Perfecto's bonds on Sanana's books was A. $20,000 B. $40,000 C. $80,000 D. $115,000 | 4. Bonds Payable appeared in the December 31, 2020 consolidated balance sheet of Perfecto Co. & Subsidiary in the amount: A. $437,500 B. $450,000 C. $462,500 D. $481,250