On July 1, 2020, Montana Inc. purchased $200,000 of the 9%, 10 year bonds of South Dakota Inc. for $176,442 (James will not give you this number on the exam so make sure you figure it out). This investment will provide Montana Inc an effective yield of 11%. Interest is received annually on June 30. The bonds have a fair value of 188,500 on Dec 31, 2020. Montana Inc's year end is December 31, What kind of investment is this? Do we need to make an entry for the $188,500? Yes or no and why? Prepare journal entries for July 1, 2020 and December 31, 2021 and June 30, 2022