Porter Company purchased 60 percent ownership of Service Corporation on January 1, 20X1, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 40 percent of Service's book value. On January 1, 20X1, Porter sold $80,000 par value, 8 percent, five-year bonds directly to Service when the market interest rate was 7 percent. The bonds pay interest annually on December 31. Porter uses the fully adjusted equity method in accounting for its ownership of Service. On December 31, 20X2, the trial balances of the two companies are as follows: Iten Cash and Accounts Receivable Inventory Buildings and Equipment Investment in Service Corporation Stock Investment in Porter Company Bonds Cost of Goods Sold Depreciation Expense Interest Expense Dividends Declared Accumulated Depreciation Accounts Payable Bonds Payable Bond Premium Common Stock Retained Earnings Sales Interest Income. Income from Service Corporation. Total Porter Company Debit Credit Debit Service Corporation Credit $ 81,480 $38,720 120,000. 65,000 500,000 300,000 101,772 82,100 99,800 61,000 25,000 15,000 5,790 14,000 40,000 10,000 $175,000 $ 75,000 68,800 41,200 80,000 200,000 2,100 200,000 100,000 230,068 49,830 200,000 114,000 5,790 17,874 $ 973,842 $ 973,842 $ 585,820 $ 585,820