Purse Corporation owns $70$ percent of Scarf Company's voting shares. On January $1,20$X$3,$ Scarf sold bonds with a par value of

$$652,500$ at $98.$ Purse purchased $$435,000$ par value of the bonds; the remalnder was sold to nonaffillates. The bonds mature in five

years and pay an annual interest rate of $8$ percent. Interest is paid semiannually 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 $204.$

I need help with all parts $($Required A$,$ B$,$ & C$).$ Thank you!

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

Required A Required $B$ Required C

Prepare the journal entries Purse recorded during $204$ with regard to its investment in Scarf bonds.

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.