00 bolne DALY On January 1, 2020, Kevin Company issued three-year bonds with a face value of $670,000. When sold, the market price for the bonds was $704,531.80. The bonds paid interest annually on December 31 and mature on December 31, 2022. The stated interest rate is 10%. At the time the bonds were issued the market interest rate for debt of identical risk and maturity was 8%. There are no issue costs. Kevin amortizes discount and premium using the Effective Interest method, Here is the amortization table for the Kevin Company bonds: Date Cash Int. Exp. Prem Amort. Carry Value 01/01/20 704,531.80 12/31/20 67.000.00 56,362,54 10,63746 693,894,34 12/31/21 67,000.00 55,511.55 11,488.45 682,405.89 12/31/22 67.000,00 54,594.11 12,405.89 670,000.00 Assume Kevin Company's fiscal year ends on November 30. Give the interest expense reported on Kevin Company's Income Statement for the fiscal year ended November 30, 2021. Hint: This is for a full twelve-month period. Essay Toolbanon Help Save & Exit 9 54 points Kevin Company acquired as an investment $250,000 of 7% bonds, dated January 1, 2020 and maturing on December 31, 2022. The bonds were acquired in order to profit from price changes (hint: then what kind of investment is this?). The company will receive interest annually, every December 31 through December 31, 2022. As a result of changing market conditions, the bond price was 95 on December 31, 2020 and 97 12 on December 31, 2021. Below, please find an amortization table for Kevin Company's investment. 8 003747 Date Cash Int. Rev. Disc, Amort. Carry Value 01/01/20 243,556.75 12/31/20 17,500.00 19.484.54 (1.984.54) 245,541.29 12/31/21 17,500.00 19.643.30 (2,143.30) 247,684.59 12/31/22 17.500.00 19,815.41 (2.315.41) 250,000.00 1. What effective interest rate is earned by Kevin Company on this investment? 2. Give the required journal entry to mark the investment to market on December 31, 2020. For full credit, please show all work, including the tables you are creating to derive your answer. All tables used in your work must follow the format I taught you in class for marking-to-market problems. 3. Give the required journal entry to mark the investment to market on December 31, 2021. For full credit, please show all work, including the tables you are creating to derive your answer. All tables used in your work must follow the format I taught you in class for marking-to-market problems