The following transactions relate to bond investments of Livermore Laboratories. The companys fiscal year ends on December 31. Livermore uses the straight-line method to determine interest.

2016

July	1		Purchased $26 million of Bracecourt Corporation 12% debentures, due in 20 years (June 30, 2036), for $25.7 million. Interest is payable on January 1 and July 1 of each year.
Oct.	1		Purchased $40 million of 15% Framm Pharmaceuticals debentures, due May 31, 2026, for $42,320,000 plus accrued interest. Interest is payable on June 1 and December 1 of each year.
Dec.	1		Received interest on the Framm bonds.
Dec.	31		Accrued interest.

2017

Jan.	1		Received interest on the Bracecourt bonds.
June	1		Received interest on the Framm bonds.
July	1		Received interest on the Bracecourt bonds.
Sept.	1		Sold $20.0 million of the Framm bonds at 102 plus accrued interest.
Dec.	1		Received interest on the remaining Framm bonds.
Dec.	31		Accrued interest.

2018

Jan.	1		Received interest on the Bracecourt bonds.
Feb.	28		Sold the remainder of the Framm bonds at 103 plus accrued interest.
Dec.	31		Accrued interest.

Required:

1.	Prepare the appropriate journal entries for these long-term bond investments. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations. Enter your answers in whole dollars.)

2.	By how much will Livermore Labs earnings increase in each of the three years as a result of these investments? (Ignore income taxes.) (Do not round your intermediate calculations. Enter your answers in whole dollars.)