Problem 1 Pokey and Co. is a 90% owner of Sookey and Co. Sookey issued $1,000,000 of 10 year 10% bonds on January 1, 2012, at 104. The premium is being amortized on the SL method. Interest is payable annually on January 1st. On January 1, 2018, Pokey acquired all of the bonds for $960,000. Pokey will amortize the discount on a straight line basis. For the year ending December 31, 2018, determine the effects of this transaction on: 1) Consolidated net income 14,000 2) On the distribution of the income to the controlling and non-controlling interests