Spice Company issued $200,000 of 10 percent first mortgage bonds on January 1, 20X4, at 105. The bonds mature in 10 years and pay interest semiannually on January 1 and July 1. Pumpkin Corporation purchased $140,000 of Spice's bonds from the original purchaser on December 31, 20X8, for $125,000. Pumpkin owns 75 percent of Spice's voting common stock. Spice's partial bond amortization schedule is as follows:

26) Based on the information given above, what amount of premium on bonds payable will be eliminated in the preparation of the December 31, 20X8 consolidated financial statements?

A) $4,276

B) $6,108

C) $6,581

D) $4,607

Answer: A

) Based on the information given above, what amount of gain or loss on constructive bond retirement will be reported in the December 31, 20X8 consolidated financial statements?

A) $8,892 loss

B) $81,108 loss

C) $19,276 gain

D) $81,108 gain

Answer: C

) Based on the information given above, what amount of premium on bonds payable will be eliminated in the preparation of the December 31, 20X9 consolidated financial statements?

A) $5,097

B) $3,568

C) $5,614

D) $3,930

Answer: B

Answers are provided. Please explain how to get these numbers!!!

Interest SPMT Interest Expense Amort of Discount (Premium) PMT # 1 2 3 4 5 6 7 8 9 10 11 12 1/1/20X4 7/1/20X4 1/1/20X5 7/1/20X5 1/1/20X6 7/1/20X6 1/1/20X7 7/1/20X7 1/1/20X8 7/1/20X8 1/1/20X9 7/1/20X9 1/1/20X0 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 9,684.96 9,670.43 9,655.23 9,639.33 9,622.69 9,605.29 9,587.09 9,568.04 9,548.12 9,527.28 9,505.48 9,482.68 (315.04) (329.57) (344.77) (360.67) (377.31) (394.71) (412.91) (431.96) (451.88) (472.72) (494.52) (517-32) Premium (Discount) 10,000.00 9,684.96 9,355.38 9,010.61 8,649.94 8,272.63 7,877.92 7,465.01 7,033.05 6,581.18 6,108.46 5,613.94 5,096.62 Bonds Payable 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 CV of Bonds 210,000.00 209,684.96 209,355.38 209,010.61 208,649.94 208,272.63 207,877.92 207,465.01 207,033.05 206,581.18 206, 108.46 205,613.94 205,096.62