Purse Corporation owns 70 percent of Scarf Company's voting shares. On January 1, 20X3, 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 nonaffiliates. 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. Note: Assume using straight- line amortization of bond discount or premium. Required: a. What amount of interest expense should be reported in the 20x4 consolidated income statement? Interest expense b. Prepare the journal entries Purse recorded during 20X4 with regard to its investment in Scarf bonds. (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.) View transaction list Journal entry worksheet Record the interest received on the bonds. Note: Enter debits before credits. General Journal Debit Credit Date January 1, 20X4 Record entry Clear entry View general journal C. Prepare all worksheet consolidation entries needed to remove the effects of the intercorporate bond ownership in preparing consolidated financial statements for 20X4. (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.) view transaction list Consolidation Worksheet Entries Record the entry to eliminate the effects of the intercompany ownership in the bonds. Note: Enter debits before credits. Event Accounts Debit Credit 1 Record entry Clear entry view consolidation entries