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Pete Sampras Corporation purchased for $22,500 as a trading investment bonds with a face value of $20,000. At December 31, Sampras received annual interest of

Pete Sampras Corporation purchased for $22,500 as a trading investment bonds with a face value of $20,000. At December 31, Sampras received annual interest of $2,000, and the fair value of the bonds was $20,900. Prepare Sampras journal entries for (a) the purchase of the investment, (b) the interest received, and (c) the fair value adjustment.

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