Bond eliminations, partial purchase. Carlton Company is an 80%-owned subsidiary of Mirage Company. On January 1, 2015, Carlton sold $100,000 of 10-year, 7% bonds for $101,000. Interest is paid annually on January 1. The market rate for this type of bond was 9% on January 2, 2017, when Mirage purchased 60% of the Carlton bonds for $53,600. Discounts may be amortized on a straight-line basis.

1. Prepare the eliminations and adjustments required for this bond purchase on the December 31, 2017, consolidated worksheet.

2. Prepare the eliminations and adjustments required on the December 31, 2018, consolidated worksheet.