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  3. 4. gamma corporation purchased an investment in $

4. Gamma Corporation purchased an investment in $70,000,000 face value 6 percent bonds in...

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Accounting

4. Gamma Corporation purchased an investment in $70,000,000 face value 6 percent bonds in Brass Monkey Corporation dated January 1,2023 for $66,666,633. For bonds of comparable risk, the current market rate is 7 percent. Interest is received semi-annually on June 30, and December 31. On December 31,2023 the FMV of the bond was $67,200,000.
(a): Prepare all necessary journal entries for 2023 assuming Gamma holds the bonds as held to maturity. Show calculations and a partial amortization schedule.
(b) Show how the above activity would be presented on the Companys Income statement (Statement of Comprehensive Income) and the year-end balance sheet for the Investment. Be precise!

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