On January 1, 2017, Swifty Corporation issued $2,500,000 of 5-year, 6% bonds at 96, The bonds pay interest annually on January 1. By January 1, 2019. the market rate of interest for bonds of risk similar to those of Swifty Corporation had risen. As a result, the market value of these bonds was $2,280,000 on January 1, 2019-below their carrying value. Joanna Glover, president of the company, suggests repurchasing all of these bonds in the open market at the $2,280,000 price. To do so, the company will have to issue $2,280,000 (face value) of new 10-year, 9% bonds at par. The president asks you, as controller, "What is the feasibility of my proposed repurchase plan? Answer the following. Your Answer Correct Answer Your answer is correct. What is the carrying value of the outstanding Swifty Corporation 5-year bonds on January 1,2019 (Assume straight-line amortization.) Carrying value of bonds $ 2440000 Prepare the journal entry to redeem the 5-year bonds on January 1,2019. Prepare the journal entry to issue the new 10-year bonds. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Discount on Bonds Payable Interest Payable (To record redemption of bonds) To record sale of 10-year bonds at par)