Prim Owns 70 percent of Slims voting shares. On January 1, 2016, SLIM Company issued $ 3,000,000 par value, 10-year bonds at 109. which Mega Corporation purchased. The coupon rate on the bond is 12percent. Interest payments are made semiannually on July 1 and January1. On July 1, 2019, Prim Company purchased $500,000 par value of bonds from Mega for $ 480,500.

Required (Show effective interest methodusing excel: 2decimals)

a. What amount of gain or loss will be reported in SLIMs 2019 income statement on the retired bonds? b. Will a gain or loss be reported in the 2019 consolidated financial statements for the constructive retirement of bonds? What amount will be reported? c. How much will Prim purchase of the bonds change consolidated net income for 2019? d. Prepare the worksheet consolidation entry or entries needed to remove the effects of the intercorporate bond ownership in preparing consolidated financial statement on December 31, 2019, and 2020. e. If SLIM reports net income of $750,000 for 2020, what amount of income will be assigned to the noncontrolling interest in the consolidated income statement?