Stallion Corporation sold $$100,000$ par value, $10-$year first mortgage bonds to Pony Corporation on January $1,205.$ The bonds, which

bear a nominal interest rate of $12$ percent, pay interest semiannually on January $1$ and July $1.$ The current market interest rate is $11$

percent. Pony Corporation owns $65$ percent of the voting stock of Stallion Corporation, and consolidated statements are prepared on

December $31,207.$

Required:

a$.$ What was the original purchase price of the bonds to Pony Corporation?

b$.$ What is the balance in Pony's bond investment account on December $31,20$X$7?$

c$.$ Prepare the worksheet consolidation entry or entries needed to remove the effects of the intercompany ownership of bonds in

preparing consolidated financial statements for $207.$

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

What is the balance in Pony's bond investment account on December $31,20$X$7?$

Note: Do not round your intermediate calculations. Round your final answer to nearest whole dollar.

Bond investment account

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

What is the balance in Pony's bond investment account on December $31,20$X$7?$

Note: Do not round your intermediate calculations. Round your final answer to nearest whole dollar.

Bond investment account

Prepare the worksheet consolidation entry or entries needed to remove the effects of the interco

consolidated financial statements for $20$X$7.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the firs

intermediate calculations. Round your final answers to nearest whole dollar.

A Record the entry to eliminate the effects of the

intercompany ownership in the bonds.

Record the entry to eliminate the intercompany interest

receivables or payables.

ip in the