Several years ago Brant, Inc., sold $960,000 in bonds to the public. Annual cash interest of 8 percent ($76,800) was to be paid on this debt. The bonds were issued at a discount to yield 10 percent. At the beginning of 2016, Zack Corporation (a wholly owned subsidiary of Brant) purchased $160,000 of these bonds on the open market for $181,000, a price based on an effective interest rate of 6 percent. The bond liability had a carrying amount on that date of $780,000. 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, 2016 and December 31, 2018? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate answers to nearest whole number.) view transaction list Consolidation Worksheet Entries 2 Prepare Entry *B to eliminate the intra-entity bond holdings and to adjust the investment in Zack for the unrecognized loss on retirement. Note: Enter debits before credits. Debit Date Accounts Credit December 31, 2018 Bonds payable Interest income Investment in Zack 46,584 Investment in bonds Interest expense