On January 1, 2023, FLUMMOX Inc. purchased, in U.S. Funds $1,800,000 of Bonds of the BALLAST Company. On that date, the Bonds were trading at par. These Bonds pay 8% interest annually each December 31. The Bonds mature on December 31, 2025. The following exchange rates were applicable between 2023 and 2025. The rates indicate the cost (in Canadian dollars) of purchasing 1 U.S. dollar:

 January 1, 2023, CDN $1.3565

December 31, 2023 CDN $1.3725 

December 31, 2024 CDN $1.3425 

December 31, 2025 CDN $1.3575 

Assume that the average annual exchange rate was equal to the December 31st spot rates. 

Required: 

1. Prepare FLUMMOX's journal entries for each of 2023, 2024 and 2025. 

2. Compute the carrying value of the investment at the end of each year.