pacelli company issued 10 year 10 bonds with a par value of 1000000 on january 2 2010 for 940000/

/in /by

Required:
A. Compute the total gain or loss on the constructive retirement of debt.
B. Allocate the total gain or loss between Pacelli Company and Salez Company.
C. Prepare the book entries related to the bonds made by the individual companies during 2012.
D. Assume that the two companies reported net income as follows: