Amazing Corporation purchased $100,000 par value bonds of its subsidiary, Broadway Company, on December 31, 20X5, from Lemon Corporation. The 10-year bonds bear a 9 percent coupon rate, and Broadway originally sold them on January 1, 20X3, to Lemon. Interest is paid annually on December 31. Amazing owns 85 percent of the stock of Broadway.
In preparing the consolidation worksheet at December 31, 20X6, Amazing's controller made the following entry to eliminate the effects of the intercorporate bond ownership:

Required
With the information given, answer the following questions:
a. What amount did Amazing pay when it purchased Broadway's bonds?
b. Prepare the journal entry made by Broadway in 20X6 to record its interest expense for the year.
c. Prepare the journal entry made by Amazing in 20X6 to record its interest income on the Broadway bonds that it holds.
d. Prepare the elimination entry to remove the effects of the intercorporate bond ownership in completing a three-part consolidation worksheet at December 31, 20X5.
e. Broadway reported net income of $60,000 and $80,000 for 20X5 and 20X6, respectively. Amazing reported income from its separate operations of $120,000 and $150,000 for 20X5 and 20X6, respectively. What amount of consolidated net income and income to the controlling interest will be reported in the consolidated income statements for 20X5 and20X6?

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Bonds Payable Interest Income Investment in Broadway Company Stock NCI in NA of Broadway Company 100,000 8,600 5,355 945 Investment in Broadway Company Bonds Discount on Bonds Payable Interest Expense 102,400 3,000 9,500