Problem Corp owns $70\%$ of Solution Inc. Problem uses the equity method to account for its investment in Solution.

Show all work and label all numbers.

On January $1,2016,$ Solution issued $$100,000$ of $10\%15-$year bonds to the market at a price of $98\%.$ The bonds pay interest annually December $31.$

On January $1,2021,$ Problem purchased $40\%$ of the bonds from the market at a price of $100\%.$ Problem intends to hold the bonds to maturity.

Both companies used the straight$-$line method to amortize discounts and premiums.

Prepare the $12/31/2022$ eliminating journal entries with respect to the intercompany bond transactions.