On January 1,2017, Carla Company purchased 12% bonds, having a maturity value of $278,000 for $299,076.51. The bonds provide the bond holders with a 10% yield. They are dated January 1,2017 and mature January 1,3022, with interest received on January 1 of each year. Carla Company uses the effective interest method to allocate unamortized discount or premium. The bonds are classified as available for sale category. The fair value of the bonds at December 31 of each year end is as follows.

2017 $296,600

2018 $287,300

2019:$286,200

2020:$288,200

2021:$278,000

(A) prepare the journal entry at the date of the bond purchase

(B) prepare the journal entries to record the interest revenue and recognition of fair value for 2017.

(C)prepare the entry to record the recognition of fair value for 2018