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Perry Corporation purchased 90 percent of Smith Company's outstanding voting stock on January 1,2015, at underlving book value. At that date, the fair value of the noncontrolling interest was equal to 10 percent of the book value of Smith Company. Perry also purchased $150,000, 6%, five-year bonds directly from Smith on January 1, 2015, for $156,000. The bonds pay interest annually (not semi-annually) on December 31. The effective interest rate is 5.0742%. The trial balances of the companies as of December 31, 2017, are as follows on the next page. A. Prepare the journal entry or entries for 2017 on Perry's books related to the investment in Smith Company stock. These are the journal entries actually recorded in Perry's accounts. These are the trial balances for both Perry and Smith for 2017 Corporation Smith Compan Debit Credit Credit Debit $ 54,900 112,500 360,000 $ 33,000 Cash & Receivables Inventory Buildings & Equipment Accumulated Depreciation Investment in Smith Stock Investment in Smith Bonds Accounts Payable Bonds Payable Premium on Bonds Payable Common Stock Retained Earnings Dividends Declared Sales Cost of Goods Sold Depreciation Expense Interest Expense Interest Income Income from Smith Total 247,500 600,000 $ 210,000 $120,000 182,088 152,580 52,500 150,000 2,580 120,000 74,823 138,600 300,000 180,000 363,018 45,000 30,000 210,000 187,500 129,000 30,000 24,000 119,700 22,500 7,803 7,803 $1.443.168 $1443,168 7040 $707403 Perry Corporation purchased 90 percent of Smith Company's outstanding voting stock on January 1,2015, at underlving book value. At that date, the fair value of the noncontrolling interest was equal to 10 percent of the book value of Smith Company. Perry also purchased $150,000, 6%, five-year bonds directly from Smith on January 1, 2015, for $156,000. The bonds pay interest annually (not semi-annually) on December 31. The effective interest rate is 5.0742%. The trial balances of the companies as of December 31, 2017, are as follows on the next page. A. Prepare the journal entry or entries for 2017 on Perry's books related to the investment in Smith Company stock. These are the journal entries actually recorded in Perry's accounts. These are the trial balances for both Perry and Smith for 2017 Corporation Smith Compan Debit Credit Credit Debit $ 54,900 112,500 360,000 $ 33,000 Cash & Receivables Inventory Buildings & Equipment Accumulated Depreciation Investment in Smith Stock Investment in Smith Bonds Accounts Payable Bonds Payable Premium on Bonds Payable Common Stock Retained Earnings Dividends Declared Sales Cost of Goods Sold Depreciation Expense Interest Expense Interest Income Income from Smith Total 247,500 600,000 $ 210,000 $120,000 182,088 152,580 52,500 150,000 2,580 120,000 74,823 138,600 300,000 180,000 363,018 45,000 30,000 210,000 187,500 129,000 30,000 24,000 119,700 22,500 7,803 7,803 $1.443.168 $1443,168 7040 $707403

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