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 $79,000 par value, 8 percent, five-year bonds directly to Service for $81,000 and 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: Note: Assume using straight-line amortization of bond discount or premium Service Corporation Porter Compan Debit Credit Debit Credit Item Cash &Accounts Receivable Inventory Buildings & 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 Corp. Total $84,200 138,000 518,000 108,000 $73,000 98,000 307,000 82,800 23,000 ,920 39,000 80,200 58,000 13,000 13,920 6,000 $68,000 114,200 196,000 $168,000 97,520 79,000 1,200 197,000 227,000 204,000 97,000 47,000 121,000 5,920 25,200 $998,920 $998,920 $649,120 $649,120