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  3. several years ago brant, inc., sold $960,000 in bo

Several years ago Brant, Inc., sold $960,000 in bonds to the public. Annual cash interest...

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Accounting

Several years ago Brant, Inc., sold $960,000 in bonds to the public. Annual cash interest of 7 percent ($67,200) was to be paid on this
debt. The bonds were issued at a discount to yield 10 percent. At the beginning of 2019, Zack Corporation (a wholly owned subsidiary
of Brant) purchased $120,000 of these bonds on the open market for $141,000, a price based on an effective interest rate of 5 percent.
The bond liability had a carrying amount on that date of $820,000. 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 31,2019 and December 31,2021?(If no entry is
required for a transaction/event, 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.
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