On January 1, 2020, Flounder Limited paid $505,633.00 for 12% bonds with a maturity value of $470,000. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2020, and mature on January 1, 2025, with interest receivable on December 31 of each year. Flounder applies ASPE using the effective interest method and has a December 31 year-end. Assume that Flounder hopes to make a gain on the bonds as interest rates are expected to fall. Flounder accounts for the bonds at fair value with changes in value taken to net income, and separately recognizes and reports interest income. The fair value of the bonds at December 31 of each year-end is as follows: 2020 $502,100.00 2021 $484,100.00 2022 $482,220.00 2023 $476,580.00 2024 $470,000.00