1. Subsidiary purchase of Parent Company Outstanding Bonds:

Parent Inc. had $600,000 par of 8% bonds payable outstanding on January 1, 2019 due January 1, 2015 with an unamortized discount of $12,000. Subsidiary is a 90%-owned subsidiary of Parent. On January 2, 2019, Subsidiary Corporation purchased $150,000 par value of Parent's outstanding bonds for $152,000. The bonds have interest payment dates of January 1 and July 1. Straight-line amortization is used.

With respect to the bond purchase, what is the amount of the total gain or (loss) that will be shown on the consolidated income statement of Parent Corporation and Subsidiary for 2019? What is the amount of the parent share of the Gain or loss?

Computations:

% of bonds purchased
Book Value of Bonds
Price paid for Bonds
Gain/(Loss)
Parent share of G/(L)