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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Apple Shortway Corporation Publishing Company $132,000 Investment in Shortway Publishing Company Stock Investment in Apple Corporation Bonds Bonds Payable Discount on Bonds Payable Interest Expense Interest Income Interest Payable Interest Receivable $106,000 500,000 15,000 55,000 8,000 25,000 5,000