Play Company acquired an 80% interest in Stop Company for $272,000 cash on January 1, 2016. Sunday had the following Balance Sheet on the date of acquisition:

Stop Company

Balance Sheet January 1, 2016

Assets	Liabilities
Accounts Receivable $90,000	Accounts Payable $50,000
Depreciable Fixed Assets $200,000	Bonds Payable $50,000
Land $50,000	Discount on Bonds Payable $(1,620)
Goodwill $10,000	Common Stock ($10 par) $100,000
	Retained Earnings $151,620
Total Assets $350,000	Total Liabilities & Equity $350,000

The excess of the price paid over book value is attributable to the Depreciable Fixed Assets, which have a fair value of $260,000. The Depreciable Assets have a 10-year remaining life. Stop sold a piece of Land to Payday for $60,000 on January 1, 2017. It cost Stop $50,000 to purchase the land from an external party.

On January 1, 2018, Stop held merchandise acquired from Play for $20,000. This beginning inventory had an applicable gross profit of 40%. During 2018, Play sold $60,000 worth of merchandise to Stop. Stop held $30,000 of this merchandise at December 31, 2018. This ending inventory and an applicable gross profit of 35%. Stop owed Play $23,000 on December 31, 2018 as a result of these intercompany sales.

On January 1, 2018, Play held merchandise acquired from Stop for $10,000. This beginning inventory had an applicable gross profit of 25%. During 2018, Stop sold $40,000 worth of merchandise to Play. Play held $6,000 of this merchandise at December 31, 2018. This ending inventory had an applicable gross profit of 30%. Play owed Stop $11,000 on December 31, 2018 as a result of these intercompany sales.

Stop sold bonds on January 1, 2015 with a face value of $50,000. These bonds carry a coupon interest rate of 8% and term to maturity of 5 years. The bonds were issued when the market rate was 9%. When Play purchased these bonds on January 1, 2017, the market rate was 10%. Both companies use the Effective Interest method to amortize the premium/discount on the bonds.

2 Play and Stop had the following trial balances on December 31, 2018:

Balances:	Play	Stop
Payday Sunday Accounts Receivable	124,000	85,000
Inventory	6,000	30,000
Depreciable Fixed Assets	400,000	200,000
Accumulated Depreciation	(130,000)	(40,000)
Land	60,000
Investment in Subsidiary	272,000
Investment in Subsidiary Bonds	49,090
Goodwill		10,000
Accounts Payable	(80,000)
Bonds Payable		(50,000)
Discount on Bonds Payable		459
Common Stock	(300,000)	(100,000)
Retained Earnings, January 1	(348,264)	(134,880)
Sales	(200,000)	(100,000)
Expenses	160,000	85,000
Interest Revenue	(4,826)
Interest Expense		4,421
Dividend Income	(8,000)
Dividends Declared	0	10,000
Total	0	0

(1) Using TVM principles:

a. Calculate how much Stop Company received on January 1st 2015 for issuance of the bonds. Round to the nearest dollar.

b. Calculate how much Play Company paid to purchase the bonds on January 1st 2017. Round to the nearest dollar.

c. Prepare one bond amortization schedule for both the issuer and purchaser. Round each figure to the nearest dollar.

(2) Prepare the Eliminating and Adjusting Entries, the Schedules and Worksheet necessary to produce the consolidated financial statements of Play Company and its subsidiary for the year ended December 31, 2017.