On July 1, 2001, Sixty Company, the 90%-owned subsidiary of Pandle Corporation, issued to the public $100,000 face amount of 7% bonds (interest payable annually) due July 1, 2006, for $92,221, a yield rate of 9%. On June 30, 2003, when the carrying amount of the bonds was $94,938, Pandle acquired $40,000 face amount of the outstanding 7% bonds in the open market for $37,016, a yield rate of 10%.
Prepare a working paper to show how the $959 intercompany gain realized by Sixty on June 30, 2003, will be recognized in the accounting records of Pandle Corporation and Sixty Company for the three years ending June 30, 2006. Use the following format:

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The Answer of On July 1, 2001, Sixty Company, the 90%-owned subsidiary of Pandle Corporation, issued to the public $100,000 face amount of 7% bonds (interest payable annually) due July 1, 2006, for $92,221, a yield rate of 9%. On June 30, 2003, when the carrying amount of the bonds was $94,938, Pandle acquired $40,000 face amount of the outstanding 7% bonds in the open market for $37,016, a yield rate of 10%.
Prepare a working paper to show how the $959 intercompany gain realized by Sixty on June 30, 2003, will be recognized in the accounting records of Pandle Corporation and Sixty Company for the three years ending June 30, 2006. Use the following format:

On July 1, 2001, Sixty Company, the 90%-Owned Subsidiary of Pandle