8. On July 1, 2014, Wheeler Company purchased $4,000,000 of Duggen Company's 8% bonds, due on July 1, 2021. The bonds, which pay interest semianually on January 1 and July 1, were purchased for $3,500,000 to yield 10%. Determine the amount of interest revenue Wheeler should report on its income statement for the year ended December 31, 2014.

9. If the bonds in Question 8 are classified as available for sale and they have a fair value at December 31, 2014, of $3,604,000, prepare the journal entry (if any) at December 31, 2014 to record this transaction.

1. Using information provided in Questions 8 and 9, prepare journal entries for the year 2014 assuming the investment is considered HELD TO MATURITY and TRADING SECURITY. Also, indicate at what amount will be presented the investment in the Balance Sheet.

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