4 On January 1, 2018, Ithaca Corp. purchases Cortland Inc. bonds that have a face value of $220,000. The Cortland bonds have a stated interest rate of 5%. Interest is paid semiannually on June 30 and December 31, and the bonds mature in 10 years. For bonds of similar risk and maturity, the market yield on particular dates is as follows: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 5 points January 1, 2018 June 30, 2018 December 31, 2018 7.0% 8.0% 9.0% eBook Print Required 1. Calculate the price Ithaca would have paid for the Cortland bonds on January 1, 2018 (ignoring brokerage fees) 2. Prepare all appropriate journal entries related to the bond investment during 2018, assuming lthaca accounts for the bonds asa held-to-maturity investment. Ithaca calculates interest revenue at the effective interest rate as of the date it purchased the bonds. 3. Prepare all appropriate journal entries related to the bond investment during 2018, assuming that Ithaca chose the fair value option when the bonds were purchased, and that Ithaca determines fair value of the bonds semiannually. Ithaca calculates interest revenue at the effective interest rate as of the date it purchased the bonds. Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 3 Prepare all appropriate journal entries related to the bond investment during 2018, assuming Ithaca accounts for the bonds as a held-to- maturity investment. Ithaca calculates interest revenue at the effective interest rate as of the date it purchased the bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations and round your final answers to nearest whole number.) Show lessA View transaction list 1 Record the investment in bonds with a face value of $220,000, a stated interest rate of 5% and a market yield of 7%. The bonds pay interest semi-annually. ed semi 2 Record the interest revenue. 3 Record the fair value adjustment when the market yield / is 896 4 Record the interest revenue. 5 Record the fair value adjustment when the market yield Credit is 996 Note -journal entry has been entered Record entry Clear entry View general journal