Please see attached

(a) Presented below is information taken from a bond investment amortization schedule with related fair values provided. These bonds are classified as available-for-sale 12/31/10 12/31/11 12/31/12 Amortized cost $185,500 $193,300 $200,000 Fair value $181,000 $186,000 $200,000 Required: i. Indicate, with a reason, whether the bonds were purchased at a discount or a premium. (4 points) ii. Prepare the adjusting entry to record the bonds at fair value at December 31, 2010. The Securities Fair Value Adjustment account has a credit balance of $5,000 prior to adjustment. (6 points) iii. Prepare the adjusting entry to record the bonds at fair value at December 31, 2011. (7 points) (b) At the end of Tanya Corporation's first year of business, it had the following equity investments which were all reported as Trading Securities: Cost Fair Value 12/31/10 12/31/10 Deyan Inc. $150,800 $150,500 Chambers Education Inc. $308,000 $310,000 Nandini Airways $210,000 $207,000 On April 1, 2011, Tanya sold the investment in Nandini Airways for $200,000 and then on May 31, 2011 bought a 12% equity stake in Jet Air for $85,000. The Fair Values of Deyan, Chambers and Jet Air at December 31, 2011 were $210,000, $278,000 and $70,000 respectively. Required: i. Prepare the adjusting entry to record the investments at fair value at 12/31/10 (4 points) ii. Prepare the entry to record the sale on Nandini on April 1, 2011 (5 points) iii. Prepare the adjusting entry to record the investments at fair value at 12/31/11 (9 points) (Total 35 points) 13