Explanation needed???

Purchase at an Amount Less than Book Value (Year 2)

Moon Corporation issued $300,000 par value 10-year bonds at 107 on January 1, 20X3, which Star Corporation purchased. On July 1, 20X7, Sun Corporation purchased $120,000 face value of Moon bonds from Star. The bonds pay 12 percent interest annually on December 31. The preparation of consolidated financial statements for Moon and Sun at December 31, 20X9, required the following consolidation entry:

Bonds Payable	120,000
Premium on Bonds Payable	2,520
Interest Income	14,760
Investment in Moon Corporation Bonds		118,920
Interest Expense		13,560
Investment in Moon Corporation Stock		3,120
NCI in NA of Moon Corp.		1,680

14. Based on the information given above, what percentage of the subsidiary's ownership does the parent company hold?

Answer is B. 65 percent

15. Based on the information given above, what amount did Sun pay when it purchased the bonds on July 1, 20X7? Answer is A. $118,020

16. Based on the information given above, what amount of gain or loss on bond retirement is included in the 20X7 consolidated income statement? Answer is A. $6,600

17. Based on the information given above, if 20X9 consolidated net income of $50,000 would have been reported without the consolidation entry provided, what amount will actually be reported? Answer is D. $48,800