Several years ago Brant, Inc., sold $ in bonds to the public. Annual cash interest of percent $ was to be paid on this
debt. The bonds were issued at a discount to yield percent. At the beginning of Zack Corporation a wholly owned subsidiary
of Brant purchased $ of these bonds on the open market for $ a price based on an effective interest rate of percent.
The bond liability had a carrying amount on that date of $ Assume Brant uses the equity method to account internally for its
investment in Zack.
a & b What consolidation entry would be required for these bonds on December and December If no entry is
required for a transactionevent select No journal entry required" in the first account field. Round your intermediate
calculations and final answers to nearest whole number.
Answer is complete but not entirely correct.
