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In: AccountingWood Corporation owns 70 percent of Carter Company’s votingshares. On January 1, 20X3, Carter sold...Wood Corporation owns 70 percent of Carter Company’s votingshares. On January 1, 20X3, Carter sold bonds with a par value of$645,000 at 98. Wood purchased $430,000 par value of the bonds; theremainder was sold to nonaffiliates. The bonds mature in five yearsand pay an annual interest rate of 8 percent. Interest is paidsemiannually on January 1 and July 1.a.What amount of interest expense should be reported in the 20X4consolidated income statement?b.Prepare the journal entries Wood recorded during 20X4 withregard to its investment in Carter bonds1Record the interest received on the bonds.2Record the interest received on the bonds.3Record the interest receivable on the bonds..Prepare all worksheet consolidation entries needed to remove theeffects of the intercorporate bond ownership in preparingconsolidated financial statements for 20X4.c.Prepare all worksheet consolidation entries needed to remove theeffects of the intercorporate bond ownership in preparingconsolidated financial statements for 20X4.1Record the entry to eliminate the effects of the intercompanyownership in the bonds.2Record the entry to eliminate the intercompany interestreceivables/payables.