The following is the information of the separate balance sheet information for the two subsidiary companies BIN and SAT as of December 31, 2011 (amounts in thousands)

Al Bayan Bin Set

Cash 2,440 $ 2,500

Debtors net 3 000 300

Other current assets 8000 1200

Fixed assets net 15,000 5,500

Investments in six 6500 -

$ 35,000 $ 9,500

Creditors 750 $ 230

Accrued interest 250 50

Bond loan 10%, maturity 1/1/2017 4900 1020

Share capital 25,000 7000

Retained earnings 4100 1200

$ 35,000 $ 9,500

If you know that the book value of the bin bond loan reflects $ 100,000 non-amortized deduction and that the book value of the bonds will reflect an unamortized premium of $ 20,000

Required

1- Suppose that Sitt bought $ 2,000,000 of the face value of bin bonds for $ 1,900,000 on January 2, 2012, and that the semi-annual interest is paid on 7/1 and 1/1. Specify the amounts by which the following items should appear in the consolidated financial statements of Benn and Sitt Company for the year ending 12/31/2012

A- The gain or loss on the payment of the bonds

B- The interest expense due

C- Bond loan at face value

D - Investments in bin bonds

2- Regardless of (1) Assume that the Bin Company bought the face value of $ 1,000,000 of six bonds for $ 1030,000 on January 2, 2012 and that the semi-annual interest is paid on 1/7 and 1/1. Specify the amounts by which the following items should appear in the consolidated financial statements of Benn and Sitt Company for the year ending 12/31/2012

A- The gain or loss on the payment of the bonds

B- Interest expense (assuming that the straight-line method of amortization is used)

C- The interest receivable income

D- Bond loan at book value