Purse Corporation owns 70 percent of Scarf Company's voting shares. On January 1, 20x3, Scarf sold bonds with a par value of $682,500 at 98. Purse purchased $455,000 par value of the bonds; the remainder was sold to nonafliates. The bonds mature in ve years and pay an annual interest rate of8 percent. Interest is paid semiannually on January 1 and July 1. Required: 6. What amount of interest expense should be reported in the 20x4 consolidated income statement? (Do not round your intermediate calculations. Round your final answer to nearest whole dollar.) _:| 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 "Nojournal entry required" in the first account field. Do not round your intermediate calculations. Round your final answers to nearest whole dollar.) View transaction list View journal entry worksheet January 1, 20x4 Cash Interest receivable 18,200 July 1, 20x4 Cash 18.200 Investment in Scarf Company bonds December 31, 20x4 Interest receivable Investment in Scarf Company bonds Interest income