1. Pullen Company purchased fifty $1,000 face-value, 10-year, 9.5% bonds on January 1, 2018 (dated 01/01/18). The bonds pay interest annually on December 31. If the yield on the bonds is 11%, what amount did Pullen pay for them on January 1, 2018? Please record the purchase of the bonds.

2. If Pullen classifies them as available-for-sale securities and amortizes them using the effective-interest method, what will be the balance in the Available-for-sale securities account as of January 1, 2021? (Please attach an Excel spreadsheet showing the table to compute the amortization)

3. Assume the following fair values for the end of each year:

12/31/18 = $ 47,100

12/31/19 = $ 47,900

12/31/20 = $ 46,500

Assuming all losses are temporary, please show the journal entries to record the change in fair values and the amortization of interest on the bonds.