Sean Company Issued 10 Year Bond With a par value of 800000 on 1/1/07 for 900000. Interest Payable annually on 12/31. On 1/1/12 Pierre Conpany purchased all of Sean's bonds for 950000. Sean is 60% owned subsidiary of Pierre. Both Companies Use straight line method.A. Compute the gain or loss on the retirement of debt. B. Prepare in general journey form the intercompany bond elimation entries for the consolidated statement workpapers on 12/31/12

Problem 5: Sean Company issued 10-year, 10% bonds with a par value of $800,000 on January 1, 2007, for $900 000 Interest is payable annually on December 31. On January 1, 2012, Pierre Company purchased all of Sean's bonds for $950 060 Sean is a 60% owned subsidiary of Pierre. Both companies use the straight-line method to amortize bond discounts and premiums. Required: A. Compute the total gain or loss on the retirement of the debt. B. Prepare in general journal form the intercompany bond elimination entries for the consolidated statements workpaper prepared on December 31, 2012. 2-2