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Cane Corporation purchased trading investment bonds for $42,000at par. At December 31, Crane received annual interest of $1,680, and the fair value of the bonds

Cane Corporation purchased trading investment bonds for $42,000at par. At December 31, Crane received annual interest of $1,680, and the fair value of the bonds was $39,400.

Prepare Crane's journal entries for (a) the purchase of the investment, (b) the interest received, and (c) the fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.

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