On January 1, 2021, MILANO COMPANY acquired 10%, 3-year bonds with face value of $2,000,000. Interest is payable semiannually every June 30 and December 31. The bonds were acquired for 104. Commission paid for the acquisition amounted to $ 54,670. After considering the transaction cost, the effective rate of the bond on initial recognition is computed at 8%. The objective of MILANO business model is to collect the contractual cash flows and sell financial asset. The fair value of the investment for the next periods are the following: 6/30/2021 105 6/30/2022 102 6/30/2023 108 12/31/2021 101 12/31/2022 112 12/31/2023 120 On January 1, 2022, the bonds were sold at 107, and the company incurred transaction costs amounting to $ 20,000. Required: a. Compute the initial measurement of the bonds on acquisition. b. Compute for the interest income for 2021 and the carrying amount on December 31, 2021. c. Compute for the unrealized gain or loss to be recognized in the statement of financial position and unrealized gain or loss to be recognized in the other comprehensive income for 2021. d. Compute for the amount of realized gain or loss to be recognized in the profit or loss section. e. Prepare journal entries for the current year and on the date of sale of security