On January 1, 2017, Dialga Co purchased 11% bonds, having a maturity value of 500,000, for 569,343. The bonds provide the bondholders with a 8% yield. They are dated January 1, 2017, and mature January 1, 2023, with interest receivable December 31 of each year. Dialga Cos business model is to hold these bonds to collect contractual cash flows. a, Prepare the journal entry at the date of the bond purchase.

b, Prepare the journal entry to record the interest received and the amortization for 2018

c, Calculate the book value of the bonds investment at December 31, 2018

d, Prepare any entries necessary at December 31, 2018, using the fair value option, assuming the fair value of the bonds is 560,000