Patama Holdings owns 70% of Seagull Corporation. On January 1, 2013, Seagull acquires $1,000,000 of bonds originally issued by Patama on January 1, 2008. The bonds were issued at a stated rate of 5% for 10 years, for $960,000. Seagull purchased them for $990,000. Assume that both Patama and Seagull will use the straight-line method for any bond-related amortization. Annual interest is paid on December 31.
Required:
Complete the table below with respect to the account balances that Patama, Seagull and the consolidated entity would report on their respective financial statements.

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The Answer of Patama Holdings owns 70% of Seagull Corporation. On January 1, 2013, Seagull acquires $1,000,000 of bonds originally issued by Patama on January 1, 2008. The bonds were issued at a stated rate of 5% for 10 years, for $960,000. Seagull purchased them for $990,000. Assume that both Patama and Seagull will use the straight-line method for any bond-related amortization. Annual interest is paid on December 31.
Required:
Complete the table below with respect to the account balances that Patama, Seagull and the consolidated entity would report on their respective financial statements.

Patama Holdings Owns 70% of Seagull Corporation