On January $1,2021,$ Bramble Ltd$.$ paid $$387,293\mathrm{.}66$ for $12\%$ bonds of Variation Ltd$.$ with a maturity value of $$360,000.$ The bonds provide the bondholders with a $10\%$ yield.

They are dated January $1,2021,$ mature on January $1,2026,$ and pay interest each December $31.$ Bramble acquired the bond investment as part of its portfolio of trading securities and it accounts for the bonds at FV$-$NI$,$ following IFRS. At December $31,2021,$ Bramble's year end, the bonds had a fair value of $$384,800\mathrm{.}00.$

During $2022,$ the economic outlook related to Variation's primary business took a major downturn, so that Variation's debt was downgraded. By the end of $2022,$ the bonds were

priced at $85\mathrm{.}5,$ and at December $31,2023,$ they were selling in the market at $87.$ Conditions reversed in $2024$ and the outlook for Variation significantly improved, leaving its

bonds with a fair value of $99\mathrm{.}5$ at December $31,2024.$

$($b$)$ Prepare the entries to record Bramble's purchase of the bonds on January $1,2021,$ the recognition of interest income and interest received on December $31,2021,$ and the fair value adjustment required at December $31,2021.($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. List all debit entries before credit entries. Round answers to $2$ decimal places, e$.$g$.52\mathrm{.}75.)$