Situation B-5 marks Marigold Corp issued bonds payable on January 1, 2016. The bonds have a face value of $25,000,000, a coupon rate of 6% and the interest is payable annually on the anniversary date of the bonds. When the bonds payable were issued, the market rate was 6.25% which resulted in the bond being sold at a discount. The amortization table for the bonds payable that was prepared on January 1, 2016 when the bonds were issued is shown below: Interest Premium Carrying Amount of Interest Date January 1st, 2016 January 1st, 2017 $1,500,000 $1,534,087 $ January 1st, 2018 $1,500,000 $1,536,218 $ January 1st, 2019 $1,500,000 $1,538,481 $ January 1st, 2020 $1,500,000 $1,540,886 $ January 1st, 2021 $1,500,000 $1,543,442 $ January 1st, 2022 $1,500,000 $1,546,157 $ January 1st, 2023 $1,500,000 $1,549,042 $ January 1st, 2024 $1,500,000 $1,552,107 $ January 1st, 2025 $1,500,000 $1,555,363 $ January 1st, 2026 $1,500,000 $1,558,824 $ Cash Paid Expense Amortization Bond rate $ 24,545,394 6.25% 34,087 $ 24,579,481 6.25% 36,218 $ 24,615,699 6.25% 38,481 $24,654,180 6.25% 40,886 $ 24,695,067 6.25% 43,442 $ 24,738,508 6.25% 46,157 $ 24,784,665 6.25% 49,042 $ 24,833,706 6.25% 52,107 $ 24,885,813 6.25% 55,363 $ 24,941,176 6.25% 6.25% 58,824 $ 25,000,000 On January 2nd, 2021, Marigold Corp decided to repay the loan early as they had excess cash on hand. The Imperial Bank allowed them to settle the loan for the equivalent of the market value of the loan on January 2nd, 2021. The market rate on January 2021 was 5%. Required: Compute the market value of the loan on January 2nd, 2021 and prepare a journal entry to record the early settlement of the bonds payable. (hint: The market value of the loan can be computed by finding the PV of the bonds payable with similar terms under the current market rate conditions)