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 Zack.

a. & b.

What consolidation entry would be required for these bonds on December 31, 2013 and December 31, 2015?