Padma Corporation owns 70% of the outstanding stock of Somega Company.On January 1,2012,Somega issued $2,000,000 in 6% bonds that matured on January 1,2022.At the time of issuance,the bonds were sold at a premium of $250,000.At January 1,2013,Padma purchased half of the bonds for $910,000,and constructively retired the debt.Annual interest is paid on December 31.Straight-line amortization is used by both companies.
Required:
Complete the table below with respect to the account balances that Padma,Somega and the consolidated entity would report on their respective financial statements.

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The Answer of Padma Corporation owns 70% of the outstanding stock of Somega Company.On January 1,2012,Somega issued $2,000,000 in 6% bonds that matured on January 1,2022.At the time of issuance,the bonds were sold at a premium of $250,000.At January 1,2013,Padma purchased half of the bonds for $910,000,and constructively retired the debt.Annual interest is paid on December 31.Straight-line amortization is used by both companies.
Required:
Complete the table below with respect to the account balances that Padma,Somega and the consolidated entity would report on their respective financial statements.

Padma Corporation Owns 70% of the Outstanding Stock of Somega