On January $1,2022,$ Riverbed Company purchased $$81,000$ of the $9\%,5-$year

bonds of Chester Corporation for $$75,012,$ which provides an $11\%$ return. Interest is paid

annually $($i$.$e$.,$ January $1).$ Riverbed classifies this bond as an available$-$for$-$sale security.

Prepare Riverbed's journal entries for $($a$)$ the purchase of the investment, $($b$)$ the annual interest

and discount amortization, $($c$)$ the $2022$ year$-$end adjustment, and $($d$)$ the $2023$ year$-$end

adjustment. For part $($e$),$ determine the amount that will be reported on the $2023$ balance sheet

for this investment. Assume a zero balance in the Fair Value Adjustment account at January $1,$

The bonds have a year$-$end fair value of $$76,950$ at $2022$ and $$75,000$ at $2023.$

$($a$)$ Purchase of the investment on January $1,2022$

$($b$)$ Annual interest and discount amortization at December $31,2022$

$($c$)$ The year$-$end fair value adjustment at December $31,2022$

$($d$)$ The year$-$end fair value adjustment at December $31,2023$

$($e$)$ The amount to be reported for this investment on the $2023$ balance sheet is: