On January 1 of Year 1, Baker Corp. purchased $20,000 of Chocolate Inc. bonds. These bonds pay 5% interest annually on December 31 and mature in 10 years on December 31 . The investment is classified as a held-to-maturity investment because Baker has the intent and the ability to hold the bonds for 10 years. The effective rate on the bonds is 4.5%. a. Were the bonds purchased at a discount or premium? b. Prepare a bond amortization schedule for Year 1 and Year 2 using the effective interest method. Note: Round each amount entered into the schedule to the nearest whole dollar. On January 1 of Year 1 , Baker Corp. purchased $20,000 of Chocolate Inc. bonds. These bonds pay 5% interest annually on December 31 and mature in 10 years on December 31 . The investment is classified as a held-to-maturity investment because Baker has the intent and the ability to hold the bonds for 10 years. The effective rate on the bonds is 4.5%. Journal Entries and Balance Sheet Presentation c. Prepare the journal entry for the purchase of the investment on January 1 of Year 1. d. Prepare the journal entries to record interest received on December 31 of Year 1 and December 31 of Year 2. e. Indicate the carrying value of the Chocolate bonds on Baker's December 31 of Year 2 balance sheet assuming that the fair value of the bonds on December 31 of Year 2 was $20,800. $