On January 1, 2021, Ithaca Corp. purchases bonds from Cortland Inc. that have a face value of $330,000. Cortland bonds have a stated interest rate of 5%. Interest is paid semi-annually on June 30 and December 31, and the bonds have a maturity of 10 years. For bonds of similar risk and maturity, the market return on particular dates is as follows: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1, and PVAD of $1) (Use appropriate factors ) from the tables provided.) :

January 1, 2021	11.0	%
June 30, 2021	12.0	%
December 31, 2021	14.0	%

Required:

1A - Fair Value of Bond:
1. Calculate the price Ithaca would have paid for the Cortland bonds on January 1, 2021 (without accounting for brokerage fees) and prepare a journal entry to record the purchase.
2. Prepare all applicable journal entries related to the bond investment during 2021, assuming Ithaca accounts for the bonds as a held-to-maturity investment. Ithaca calculates interest income at the interest rate effective on the date you purchased the bonds.
3.Prepare all applicable journal entries related to the investment in the bonds during 2021, assuming that Ithaca elected the fair value option when the bonds were purchased, and that Ithaca determines the fair value of the bonds semi-annually. Ithaca calculates interest income at the interest rate effective on the date you purchased the bonds.