Question 3 On January 1, 2016, Pacific Company acquired 60 percent of the out Company at the book value of the shares acquired. On that date outstanding common stock of Stamp value of noncontrolling interest was equal to 40 percent of book value of Stamp. asqal to40 percent of book value of Stamp. At the time of purchase, Stamp $1,000,000 outstanding and retained earnings of $800,000 On December 31, 2016, Pacific purchased 50 percent of Stamp's bonds issued outstanding which were originally $4,2 19,600 to yield 10%. The total bond issue has a face value of$4,500,000, on January 1, 2015, at pays 9 percent interest annually, and has a 10-year maturity. Any premium or $2.197608, a price based on an effective interest rate of 8%, for n Stamp's bonds and intends to hold the bonds until maturity. The bond liability had a book 55,216. Assume Pacific uses the equity method to account internally for its the effective interest method. Pacific paid its investment i value on that date of $4,2 investment in Stamp Company What consolidation entry would be required for these bonds on December 31, 2018