January $01,2022,$ Pebble Company purchased a controlling interest in Rock Company for $$402,000.$ On this date, Rock had total owners' equity of $$440,000.$ Any excess of cost over book value is due to goodwill.Pebble accounts for its investment in Rock using the simple equity method.On January $1,2024,$ Pebble held merchandise acquired from Rock for $$50,000.$ During $2024,$ Rock sold merchandise to Pebble for $$120,000,$ of which Pebble holds $$30,000$ on December $31,2024.$ Rock's gross profit on sales is $40\%.$ On December $31,2024,$ Pebble still owes Rock $$5,000$ for merchandise.On December $31,2022,$ Pebble sold $$100,000$ par value of $11\%,10-$year bonds which resulted in an effective interest rate of $10\%.$ The bonds pay interest semi$-$annually on June $30$ and December $31.$ Both companies use the Effective Interest method to amortize any premium $/$ discount on the bonds.On December $31,2023,$ Rock purchased $$50,000$ par value of the parent's bonds, paying a price equal to par. The bonds are still held on December $31,2024.$On December $31,2024,$ Pebble sold equipment with a cost of $$50,000$ and accumulated depreciation of $$30,000$ to Rock for $$40,000.$ Rock will use the equipment beginning in $2025.$On July $01,2024,$ the subsidiary signed a mortgage note with its parent for $$125,000.$ Interest, at $11\%$ of the unpaid balance, and principal payments are due annually beginning July $1,2025.($For convenience, the mortgage balances are not divided into current and long$-$term portions.$)$Pebble and Rock had the following trial balances on December $31,2024$:BalancesPebbleRockInventory, December $31120,00060,000$Interest Receivable$6,875$Other Current Assets$280,120450,000$Investment in Rock Company$544,500$Investment in Pebble Bonds$50,000$Investment in Mortgage$125,000$Land$140,000100,000$Buildings & Equipment$325,000440,000$Accumulated Depreciation$(120,000)(130,000)$Current Liabilities$(160,000)(80,000)$Interest Payable$(6,875)$Bonds Payable, $10\%(100,000)$Premium on Bonds Payable$(5,420)$Mortgage Payable$(125,000)$Other Long$-$Term Liabilities$(200,000)(140,000)$Common Stock $-$ Pebble Co$.(200,000)$Other Paid$-$In Capital $-$ Pebble Co$.(100,000)$Retained Earnings $-$ Pebble Co$.(489,200)$Common Stock $-$ Rock Co$.(100,000)$Other Paid$-$In Capital $-$ Rock Co$.(200,000)$Retained Earnings $-$ Rock Co$.(250,000)$Net Sales$(595,500)(520,000)$Cost of Goods Sold$355,000310,000$Operating Expenses$114,426115,500$Interest Income $(6,875)(5,500)$Interest Expense$10,5746,875$BalancesPebbleRockSubsidiary Income$(74,500)$Gain on Sale of Equipment$(20,000)$Dividends Declared $-$ Pebble Co$\mathrm{.}50,000$Dividends Declared $-$ Rock Co$\mathrm{.}25,000$TotalRequired:$1.$ Calculate the percentage interest of Rock Company's voting common stock that was acquired by Pebble$2.$ Company on the date of acquisition$\mathrm{.}3.$ Using TVM principles:a$.$Calculate how much Pebble Company received on December $31,2022$ for issuance of the bonds.Round up to the nearest dollar.b$.$ State how much Rock Company paid to purchase $50\%$ of the bonds on December $31,2023.$c$.$Prepare the bond amortization schedule for the issuer of the bonds for the three$-$year period $2022$ to $2024.$ Round each figure to the nearest dollar.$(3)$ Prepare the Eliminating and Adjusting Entries, the Schedules and Worksheet necessary to produce the consolidated financial statements of Pebble Company and its Rock for the year ended December $31,2024.$