S company issued bonds on Jan 1, 2014. Interest payments are semi annually on July 1 and Jan 1 of each year. The effective interest rate of amortization is used,

face value is 200,000$ proceeds from bonds 213,950$. stated interest rate 9%. Life of the bonds are 10 years. Market interest rate is 8%

On January 1 2016 P Purchased in the market some of S company's bonds.

Face Value of bonds purchased 75,000$

purchase price of bonds 70,936$

Market interest rate on 1/1/16 was 10%

what are the consolidation entries for year 16, and how does this affect net income?

thanks if more info is needed please ask

for the 16 the year!

X & fx 6 D E B Book Value Schedule Year 16 NC (10%) P(90%) Beg BV 580,000 $ 5,220.000 Not Income 19,816 $ 178,346 Dividends) $ (5,500 $ (49.500) 3 Ending BV 594,316 S 5.348.846 Common Stock Retained Eamings PIC Excess Par S 1,000,000 $ 4,000,000 $ 800,000 $ 198,162 (55.000) S 1,000,000 $ 4.143,162 S 800,000 X & fx 6 D E B Book Value Schedule Year 16 NC (10%) P(90%) Beg BV 580,000 $ 5,220.000 Not Income 19,816 $ 178,346 Dividends) $ (5,500 $ (49.500) 3 Ending BV 594,316 S 5.348.846 Common Stock Retained Eamings PIC Excess Par S 1,000,000 $ 4,000,000 $ 800,000 $ 198,162 (55.000) S 1,000,000 $ 4.143,162 S 800,000