Assume the same information as in E17.3 except that Roosevelt has an active trading strategy for these bonds. The fair value of the bonds at December 31 of each year-end is as follows.

2022 $534,200 2025 $517,000 2023 $515,000 2026 $500,000 2024 $513,000 Instructions

a.Prepare the journal entry at the date of the bond purchase. b.Prepare the journal entries to record the interest received and recognition of fair value for 2022. c.Prepare the journal entry to record the recognition of fair value for 2023. d.Discuss how the response to (c) will be different assuming Roosevelt has a strategy of held-for-collection and selling.