On January 1 of Year 1, Mitchell Inc. elects to account for the bonds using the fair value option. a. Record the issuance of bonds on January 1 of Year 1. b. Record the interest payment on June 30 of Year 1 . c. Record the interest payment on December 31 of Year 1. d. At December 31 of Year 1 , the market rate on the bonds drops to 7.5% due to a general increase in market risk. Record the adjustment of bonds payable to fair value