Several years ago, Soriano Corporation sold bonds with a face value of $1,000,000 to the public at a premium. Annual cash interest of 8 percent (i.e., $80,000) was to be paid on this debt. On January 1, 2019, Pading Inc., the parent company of Soriano Corporation, purchased these bonds on the open market for $940,000. (Hint: Did Pading purchase the bonds at a discount or a premium?) On that date, the bonds had 10 years until maturity and Soriano reported the book value of Bonds Payable of $1,045,000. Assume Pading uses the equity method to internally account for its investment in Soriano. Both parties use the straight-line method of amortization. Required: Consider a different scenario as follows. On January 1, 2019, Pading purchased these bonds on the open market for $1,045,000 and the bonds were reported in as Bonds Payable with a book value of $940,000 in Soriano's book on the same date. In this scenario, Pading purchased the bonds at a premium and Soriano issued the bonds at a discount. Other information remains the same as that in the original problem. What consolidation entry would be required for these bonds on December 31, 2019? What consolidation entry would be required for these bonds on December 31, 2020? Several years ago, Soriano Corporation sold bonds with a face value of $1,000,000 to the public at a premium. Annual cash interest of 8 percent (i.e., $80,000) was to be paid on this debt. On January 1, 2019, Pading Inc., the parent company of Soriano Corporation, purchased these bonds on the open market for $940,000. (Hint: Did Pading purchase the bonds at a discount or a premium?) On that date, the bonds had 10 years until maturity and Soriano reported the book value of Bonds Payable of $1,045,000. Assume Pading uses the equity method to internally account for its investment in Soriano. Both parties use the straight-line method of amortization. Required: Consider a different scenario as follows. On January 1, 2019, Pading purchased these bonds on the open market for $1,045,000 and the bonds were reported in as Bonds Payable with a book value of $940,000 in Soriano's book on the same date. In this scenario, Pading purchased the bonds at a premium and Soriano issued the bonds at a discount. Other information remains the same as that in the original problem. What consolidation entry would be required for these bonds on December 31, 2019? What consolidation entry would be required for these bonds on December 31, 2020