Wood Corporation owns 70 percent of Carter Company's voting shares. On January 1, 20X3, Carter sold bonds with a par value of $600,000 at 98. Wood purchased $400,000 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 Note: Assume using straight-line amortization of bond discount or premium Required: a. What amount of interest expense should be reported in the 20X4 consolidated income statement? Answer is complete and correct. se $16,800 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.) Answer is complete and correct. Credit Debit General Journal Date No 16,000 1 January 1, 20X4 Cash 16,000 Interest receivable 16,000 0 800 2 July 1, 20X4Cash July 1, 20X4 Investment in Carter Company bonds 16,800 Interest income 16,000 O 16,000 3 December 31, 20X Interest receivable 800 Investment in Carter Company bonds 16,800 Interest income 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.) C. Answer is not complete. Event No Debit Accounts Credit Bonds payable 400,000 Interest income Investment in Carter Company bonds Bond discount Interest expense Interest payable Interest receivable