2. On January 1, 2021, Ragan Company purchased $500,000 of 6% bonds, interest payable on December 31, for $401,820. The bonds yield 8% and mature in 20 years. The secunities are classified as available for-sale. The amortization schedule of the first three years is provided The fair market values of the bonds at 12/31 of each year are: 2021 $402,000, 2022 $407,500, 2023 $406,000. On 12/31/2023, the bonds are sold at fair value. Date Cash Interest Amortization Carrying Amount 1/1/2021 $401,820 12/31/2021 $30,000 $32,146 $ 2,146 403,966 12/31/2022 30,000 32,317 2,317 406,283 12/31/2023 30,000 32,503 2,503 408,786 Instructions, Prepare journal entries to record (a) the bond purchase and the interest recognition in 2021, (b) the recognition of fair value for 2021 and 2022, and (c) the sale of bonds on 12/31/2023