Please explain how you do these.

Kruse Corporation holds 60 percent of the voting common shares of Garys Ice Cream Parlors. On January 1, 20X6, Garys purchased $50,000 par value, 10 percent first mortgage bonds of Kruse from Cane for $58,000. Kruse originally issued the bonds to Cane on January 1, 20X4, for $53,000. The bonds have a 10-year maturity from the date of issue and pay interest semiannually. The bonds are accounted for using straight-line amortization of premiums and discounts. Garys reported net income of $20,000 for 20X6, and Kruse reported income (excluding income from ownership of Garys stock) of $40,000. Required Select the correct answer for each of the following questions.

1. What amount of interest expense does Kruse record 20X6? a. $4,000 b. $4,700 c. $5,000 d. $10,000

2. What amount of interest income does Garys Ice Cream Parlors record for 20X6? a. $4,000 b. $5,000 c. $9,000 d. $10,000

3. What gain or loss on the retirement of bonds should be reported in the 20X6 consolidated income statement? a. $2,400 gain b. $5,600 gain c. $5,600 loss d. $8,000 loss

4. What amount of consolidated net income should be reported for 20X6? a. $47,100 b. $54,400 c. $55,100 d. $60,000