On July 1, 2025, Wheeler Company purchased $4,000,000 of Dug-gen Company's 8% bonds, due on July 1, 2032. The bonds, which pay interest semiannually on January 1 and July 1, were purchased for $3,500,000 to yield 10%. Determine the amount of interest revenue Wheeler should report on its income statement for the year ended

December 31, 2025.

If the bonds in Question s

are classified as available-for-sale

and they have a fair value at December 31, 2025, of $3,604,000, prepare the journal entry (if any) at December 31, 2025, to record this transaction.

(a) Assuming no Fair Value Adjustment account balance at the beginning of the year, prepare the adjusting entry at the end of the year if Laura Company's available-for-sale debt securities have a fair value $60,000 below cost. (b) Assume the same information as part (a), except that Laura Company has a debit balance in its Fair Value Adjustment account of $10,000 at the beginning of the year.

Prepare the adjusting entry at ycar-end.

Hayes Company sold 10,000 shares of Kenyon Co. common stock for $27.50 per share, incurring $1,770 in brokerage commissions.

These securitics originally cost $260,000. Prepare the entry to record the sale of these securities.