On April $1,20$X$6,$ Private issued at par $$200,000$ of $10$ percent bonds directly to Secret; interest on the bonds is payable March $31$ and September $30.$ On January $1,20$X$7,$ Private purchased all of Secret$$s outstanding $10-$year $12$ percent bonds from an unrelated institutional investor at $98.$ The bonds originally had been issued on January $1,20$X$1,$ for $101.$ Interest on the bonds is payable December $31$ and June $30.$

Since the date it was acquired by Private Manufacturing, Secret has sold inventory to Private on a regular basis. The amount of such intercompany sales totaled $$64,000$ in $20$X$6$ and $$78,000$ in $20$X$7,$ including a $30$ percent gross profit. All inventory transferred in $20$X$6$ had been resold by December $31,20$X$6,$ except inventory for which Private had paid $$15,000$ and did not resell until January $20$X$7.$ All inventory transferred in $20$X$7$ had been resold at December $31,20$X$7,$ except merchandise for which Private had paid $$18,000.$

At December $31,20$X$7,$ trial balances for Private and Secret appeared as follows:

As of December $31,20$X$7,$ Secret had declared but not yet paid its fourth$-$quarter dividend of $$10,000.$ Both Private and Secret use the effective interest method for the amortization of bond discount and premium. On December $31,20$X$7,$ Private$$s management reviewed the amount attributed to goodwill as a result of its purchase of Secret common stock and concluded that an impairment loss in the amount of $$25,000$ had occurred during $20$X$7$ and should be shared proportionately between the controlling and noncontrolling interests. Private uses the fully adjusted equity method to account for its investment in Secret.

Required: $-$Record the basic consolidation entry. Common stock Premium on common stock Retained earning Income from secret Corporation NCI in NI Dividend declare Investment in secret corporation stock NCI in NA $-$Record the entry to eliminate the intercompany holdings of Secret's bonds.