Wagner, a holder of a $1,000,000 Palmer, Inc. bonds, collected
the interest due on March 31, year 1, and then sold the
bonds to Seal, Inc. for $975,000. On that date, Palmer, a 75%
owner of Seal, had a $1,075,000 carrying amount for the bonds.
What was the effect of Seal’s purchase of Palmer’s bond on the
retained earnings and noncontrolling interest amounts reported
in Palmer’s March 31, year 1 consolidated balance sheet?