Wood Corporation owns 70 percent of Carter Company's voting shares. On January 1, 20X3, Carter sold bonds with a par value of $735,000 at 98. Wood purchased $490,000 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 Required a. What amount of interest expense should be reported in the 20X4 consolidated income statement? (Do not round your intermediate calculations. Round your final answers to nearest whole dollar.) Answer is complete but not entirely correct Interest expense 20,580 b. Prepare the journal entries Wood recorded during 20X4 with regard to its investment in Carter bonds. (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 5.47596) Answer is complete but not entirely correct Date General Journal Debit Credit January 1 20X4 19,600 Cash Interest receivable 19,600 July 1, 20X4 Cash 19,600 Investment in Carter Company bonds 980 Interest income 20,580 December 31 20X4 Interest receivable 19,600 Investment in Carter Company bonds 980 Interest income 20,580 c. Prepare all worksheet consolidation entries needed to remove the effects of the intercorporate bond ownership in preparing consolidated financial statements for 20X4. (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%) Answer is complete but not entirely correct. Debit 490,000 41,160 0 Event Accounts Credit Bonds payable Interest income Investment in Carter Company bonds Bond discount Interest expense 484,120 5,880 41,160 Interest payable 19,600 Interest receivable 19,600