Several years ago Brant, Inc., sold $900,000 in bonds to the public. Annual cash interest of 9 percent ($81,000) was to be paid on this debt. The bonds were issued at a discount to yield 12 percent. At the beginning of 2013, Zack Corporation (a wholly owned subsidiary of Brant) purchased $180,000 of these bonds on the open market for $201,000, a price based on an effective interest rate of 7 percent. The bond liability had a book value on that date of $760,000. Assume Brant uses the equity method to account internally for its investment in Zac

a. What consolidation entry would be required for these bonds on December 31, 2013 and December 31, 2015? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) b. What consolidation entry would be required for these bonds on December 31, 2013 and December 31, 2015? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Below are the correct and incorrect answers, please provide the correct answer for the ones marked with and X in Red, thanks.

Consolidating Entries Debit Credit Date (1) Prepare entry B 180,000X 14.070 49,000 Bonds payable Interest income Investment in Zack Discount on bonds payable Investment in bonds Interest expense December 31, 2013 25,960X 198, 870 18,240X (2) Prepare entry "B 180,000X 13,761 40,266 Bonds payable Interest income Investment in Zack Discount on bonds payable Investment in bonds Interest expense December 31, 2015 21,116X 194,152 18,759X