Justin Investor, Inc., purchases $ 180,000 of 8% bonds from M. R. Bonds Company on January 1. Management intends to hold the debt securities to maturity. For bonds of similar risk and maturity, the market yield is 10%. Justin paid $ 152,000 for the bonds. It receives interest semiannually on June 30 and December 31. Due to changing market conditions, the fair value of the bonds at December 31 is $ 160,000.

Required:
1. Record Justin Investor’s investment on January 1.
2. Record the interest revenue earned by Justin Investor for the first six months ended June 30.
3. Record the interest revenue earned by Justin Investor for the next six months ended December 31.
4. At what amount will Justin Investor report its investment in the December 31 balance sheet? Why?