Apple Corporation holds 60 percent of Shortway Publishing Company s voting
Apple Corporation holds 60 percent of Shortway Publishing Company’s voting shares. Apple issued $500,000 of 10 percent bonds with a 10-year maturity on January 1, 20X2, at 90. On January 1, 20X8, Shortway purchased $100,000 of the Apple bonds for $106,000. Partial trial balances for the two companies on December 31, 20X8, are as follows:


Required
Prepare the worksheet elimination entry or entries needed on December 31, 20X8, to remove the effects of the intercorporate bond ownership in preparing consolidated financialstatements.
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