Purse Corporation owns $70$ percent of Scarf Company's voting shares. On January $1,203,$ Scarf sold bonds with a par value of

$$600,000$ at $98.$ Purse purchased $$400,000$ par value of the bonds; the remainder was sold to nonaffillates. The bonds mature in five

years and pay an annual Interest rate of $8$ percent. Interest is pald semlannually on January $1$ and July $1.$

Required:

a$.$ What amount of interest expense should be reported in the $204$ consolidated income statement?

b$.$ Prepare the Journal entrles Purse recorded during $204$ with regard to its Investment in Scarf bonds.

c$.$ Prepare all worksheet consolidation entrles needed to remove the effects of the intercorporate bond ownership in preparing

consolidated financlal statements for $204.$

Answer is not complete.

Complete this question by entering your answers in the tabs below.

Required $A$

Required B

Required C

Prepare all worksheet consolidation entries needed to remove the effects of the intercorporate bond ownership in preparing

consolidated financial statements for $204.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Do not round

your intermediate calculations. Round your final answers to nearest whole dollar.