Gamma Corp. invested in a three$-$year, $$100$ face value, $6\%$ bond paying $$105\mathrm{.}55.$ At this price, the bond will yield a $4\%$ return. Interest payable annually. Gamma uses the amortized cost model of accounting for investments.

a$.$ Prepare a bond premium amortization table for Gamma, assuming Gamma uses the effective interest method required by IFRS. Round amounts to the nearest cent.

b$.$ Prepare journal entries to record the initial investment, receipt of interest, and recognition of interest income in each of the three years, and the maturity of the bond at the end of the third year.

c$.$ Assuming Gamma applies ASPE and has chosen to use the straight$-$line method of amortization, determine the amount of premium that is amortized each year.

d$.$ Under the assumption in part$($c$),$ prepare journal entries to record the initial investment, receipt of interest, and recognition of interest income in each of the three years, and the maturity of the bond at the end of the third year.

e$.$ Compare the total interest income under the two methods over the three$-$year period.

f$.$ In Excel, list all the cash flows during the life of the bond and determine the present value of the bond using the NPV$()$ formula.