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Stang Corporation issued to Bradley Company $520,000 par value, 10-year bonds with a coupon rate of 12 percent on January 1, 20X5, at 102. The

Stang Corporation issued to Bradley Company $520,000 par value, 10-year bonds with a coupon rate of 12 percent on January 1, 20X5, at 102. The bonds pay interest semiannually on July 1 and January 1. On January 1, 20X8, Purple Corporation purchased $130,000 of the bonds from Bradley for $134,000. Purple owns 70 percent of the voting common shares of Stang and prepares consolidated financial statements.

a. Prepare the worksheet consolidation entry or entries needed to remove the effects of the intercorporate bond ownership in preparing consolidated financial statements for 20X8. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your market rate of interest to 3 decimals. For example, .0547523 should be rounded to 5.475%.)

b. Assuming that Stang reports net income of $26,000 for 20X8, compute the amount of income assigned to noncontrolling shareholders in the 20X8 consolidated income statement.(Do not round your intermediate calculations. Round your final answers to nearest whole dollar.)

c. Prepare the worksheet consolidation entry or entries needed to remove the effects of the intercorporate bond ownership in preparing consolidated financial statements for 20X9.(If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your market rate of interest to 3 decimals. For example, .0547523 should be rounded to 5.475%.)

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