Pepper Enterprises owns 95 percent of Salt Corporation. On January 1, 20X1, Salt issued $200,000 of five-year bonds at 115. Annual interest of 12 percent is paid semiannually on January 1 and July 1. Pepper purchased $100,000 of the bonds on July 1, 20X3, at par value. The following balances are taken from the separate 20X3 financial statements of the two companies:. Pepper Enterprises Salt CorporationInvestment in Salt Corporation Bonds $ 100,000 Interest Income 6,000 Interest Receivable 6,000 Bonds Payable $ 200,000 Bond Premium 13,475 Interest Expense 18,039 Interest Payable 12,000 Required:a. Compute the amount of interest expense that should be reported in the consolidated income statement for 20X3. (Do not round your intermediate calculations. Round your final answer to nearest whole dollar.)b. Compute the gain or loss on constructive bond retirement that should be reported in the 20X3 consolidated income statement. (Do not round your intermediate calculations. Round your final answer to nearest whole dollar.)c. Prepare the consolidation worksheet consolidation entry or entries as of December 31, 20X3, to remove the effects of the intercorporate bond ownership. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations. Round your final answers to nearest whole dollar.)