Sibling Company issued $$620,000$ par value, $10-$year bonds at $104$ on January $1,20x3,$ which Mega Corporation purchased. The

coupon rate on the bonds is $11$ percent. Interest payments are made semiannually on July $1$ and January $1.$ On July $1,20$X$6,$ Parent

Company purchased $$248,000$ par value of the bonds from Mega for $$240,100.$ Parent owns $70$ percent of Sibling's voting shares.

Required:

a$.$ What amount of gain or loss will be reported in Sibling's $206$ income statement on the retirement of bonds?

b$.$ Will a gain or loss be reported in the $206$ consolidated financial statements for Parent for the constructive retirement of bonds?

What amount will be reported?

c$.$ How much will Parent's purchase of the bonds change consolidated net income for $20$X$6?$

d$.$ Prepare the worksheet consolidation entry or entries needed to remove the effects of the intercorporate bond ownership in

preparing consolidated financial statements at December $31,206.$

e$.$ Prepare the worksheet consolidation entry or entries needed to remove the effects of the intercorporate bond ownership in

preparing consolidated financial statements at December $31,207.$

f$.$ If Sibling reports net income of $$62,000$ for $207,$ what amount of income will be assigned to the noncontrolling interest in the

consolidated income statement?

Complete this question by entering your answers in the tabs below.

Required $A$

Required B

Required C

What amount of gain or loss will be reported in Sibling's $20$X$6$ income statement on the retirement of bonds?

Note: Leave no cells blank $-$ be certain to enter $"0"$ wherever required.