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 solc 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. Requlred: a. What amount of interest expense should be reported in the 204 consolidated income statement? b. Prepare the journal entries Purse recorded during 204 with regard to its investment in Scarf bonds. (If no entry is requlred for a trensactlon/event, select "No journal entry requlred" In the flrst account fleld. Do not round your Intermedlate calculatlons. Round your flnel onswers to nearest whole doller.) Journal entry worksheet Note: Enter debits before credits. c. Prepare all worksheet consolidation entries needed to remove the effects of the intercorporate bond ownership in preparing consolidated financial statements for 204. (If no entry is requlred for a transactlon/event, select "No journal entry requlred" In the flrst account fleld. Do not round your Intermedlate calculations. Round your final onswers to neorest whole doller.) Consolidation Worksheet Entries Record the entry to eliminate the effects of the intercompany ownership in the bonds. Note: Enter debits before credits