TIMEWUIK ASSISTIC - Ciaper U 1 Save Problem 6-30 (LO 6-3) 23 Several years ago Brant, Inc., sold $1,020,000 in bonds to the public. Annual cash interest of 8 percent ($81,600) was to be paid on this debt. The bonds were issued at a discount to yield 10 percent. At the beginning of 2016, Zack Corporation (a wholly owned subsidiary of Brant) purchased $170,000 of these bonds on the open market for $191,000, a price based on an effective interest rate of 6 percent. The bond liability had a carrying amount on that date of $960,000. Assume Brant uses the equity method to account internally for its investment in Zack. 10 points Print References a. & b. What consolidation entry would be required for these bonds on December 31, 2016 and December 31, 2018? (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Round your intermediate answers to nearest whole number.) 09 Consolidation Worksheet Entries 2 Prepare Entry B to eliminate the intra-entity debt holdings and to recognize the loss on retirement. Note: Enter debits before credits. Date Accounts Debit Credit December 31, 2016 Record entry Clear entry view consolidation entries Consolidation Worksheet Entries Prepare Entry *B to eliminate the intra-entity bond holdings and to adjust the investment in Zack for the unrecognized loss on retirement. Note: Enter debits before credits. Accounts Debit Credit Date December 31, 2018 Record entry Clear entry view consolidation entries