Please help me with this question with a detailed answer that shows the calculation and step-by-step procedures. Thank you so much for your help. The background of this case is under Canadian ASPE or IFRS if needed.

QUESTION

DaVinci Inc. owns 75% of the common shares of Rembrandt Corp. On January 1, 2017, DaVinci issued bonds with a parvalue of $350,000which will mature on January 1, 2022. The bonds bear interest at an annual rate of 8%, with annual interest payments made each December 31^st. At thedate of issueof the bonds, DaVinci received proceeds of $360,000. On January 1, 2019, Rembrandt purchased 40% of DaVinci's bonds on the open market for $134,000.Both companies use the effective interest method. Both companies have a December 31st year- end and pay income taxes at a rate of 40%. Bond gains and losses are to be allocated to each company.During 2019, Rembrandt earned a net income of $80,000 and paid dividends of $20,000.

Market rates (Yield) for these bonds was 7.39% atissue date January 1, 2017for DaVinci.

Market rate (Yield) for Rembrandt atinvestment date January 1, 2019was 9.33%

REQUIRED:

a)Calculate the amount of the gain or loss that will appear as a separate item on the 2019 consolidated income statement, as a result of the bond transaction.

b)Calculate the after-tax gain or loss to Rembrandt on the purchase of the Bonds.

c)Calculate the after-tax gain or loss to DaVinci on the purchase of the Bonds.

d)What amount of after-tax interest expense (if any) would have to be eliminated in 2019 as a result of the purchase of the Bonds?

e)Calculate the non-controlling interest's share of Rembrandt's income for the year-ended

December 31, 2019.

f)What value would be shown on DaVinci's December 31, 2019 Consolidated Balance Sheet for the Bond issue?