1. Curri, Incorporated sold its 5% bonds with a maturity value of $1,000,000 on August 1, 2021. Investors in the market purchased the bonds for $1,044,915 a price that would earn them a 4% yield on their investment. The difference between the stated and market rates was attributed to revised inflation expectations. The bonds mature on August 1, 2026, and pay interest semi-annually on August 1 and February 1. The bonds are callable at any time after August 1, 2023. 
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3. Required:
4. For the December 31, 2022 cash flow statement, identify the cash flows reported and the reporting category for each cash flow identified.
5.  Assume that Curri was unable to make the required interest payment on February 1, 2023. 
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7. (NOTE: This assumption should not change your responses to the items above). The bondholders agreed to accept $800,000 of 2% bonds from Curri in full satisfaction of all claims relating to the 5% bonds. The 2% bonds mature on August 1, 2027, and require interest to be paid quarterly. On February 2, 2023, the 2% bonds were trading in the bond market at 77. How should Curri report the February 1, 2023 swap of the 2% bonds for the 5% bonds in its financial statements for the year ended December 31, 2023?