Part 1: Ins is paid annually on December 31". The bonds sold for $124,920 at an effective interest rate of 7% V Free Company purchased $120,000 of 8%, 5 year bonds from GE Company on January 1, 2020. j Company classified the debt investment as Available for Sale and uses the effective interest method. T was Free's Company first AFS Debt Investment. At the end of the year, this investment had a fair valu of $126,000 124920 x %7 investment on