On December $31$ of Year $1,$ Spruce Corporation purchased as an investment $$500,000$ of $10-$year, $6\%$ bonds. The bonds pay interest semi$-$annually on June $30$ and December $31.$ The bonds will yield $8\%$ on an annual basis. All amounts are rounded to the nearest dollar. Spruce Corporation intends to hold the bonds to maturity and therefore uses the cost$/$amortized cost model. Spruce Corporation follows IFRS.

Required

Complete the following with the details provided above.

Calculate the purchase price of the bond investment. $(4$ marks$)$

Prepare a bond amortization table for the bond. Use Excel, and copy the table into your Word assignment. $(8$ marks$)$

Year end is December $31.$ Prepare all of Spruce Corporation$$s journal entries related to the bonds for Year $1,$ Year $2,$ and Year $3.$