Several years ago Camerons Inc., sold $1,200,000 in bonds to the public. The annual cash interest of 4 % ($48,000) was to be paid on this debt. The bonds were issued at a discount to yield 6.5 percent. At the beginning of 2016, Blue Mountain Corporation (a wholly owned subsidiary of Camerons) purchased $150,000 of these bonds on the open market for $159,892.26, a priced based on an effective interest rate of 3.5 percent. The bond liability had a book value on that date of $887,026. Assume Camerons uses the equity method to account internally for its investment in Blue Mountain. What consolidation entry would be required for these bonds on:

December 31, 2018?