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Police Corporation purchased 70 percent of Station Company's voting shares on January 1,204, at underlying...

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Accounting

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Police Corporation purchased 70 percent of Station Company's voting shares on January 1,204, at underlying book value. On that date it also purchased $107,000 par value 12 percent Station bonds, which had been issued on January 1,201, with a 10-year maturity.
During preparation of the consolidated financial statements for December 31,204, the following consolidation entry was made in the worksheet:
\table[[Consolidation Worksheet Entries,Debit,Credit],[Bonds Payable,107,000,],[Bond Premium,9,600,],[Loss on Bond Retirement,2,500,],[Interest Income,?,119,600],[Investment in Station Company Bonds,,]]
Required:
a. What price did Police pay to purchase the Station bonds?
b. What was the carrying amount of the bonds on Station's books on the date of purchase?
c. If Station reports net income of $37,000 in 205, what amount of income should be assigned to the noncontrolling interest in the 205 consolidated income statement?
Complete this question by entering your answers in the tabs below.
Required A
Required B
Required C
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