Wood Corporation owns 1 percent of Carter Companys voting shares. On January 1, 20X3, Carter sold bonds with a par value of $750,000 at 98. Wood purchased $500,000 par value of the bonds; the remainder was sold to nonaffiliates. The bonds mature in five years and pay an annual interest rate of 8 percent. Interest is paid semiannually on January 1 and July 1. How do you find interest expense for consolidated financials? I'm using the solution given but it's incorrect.