On January 1, 2020, Sharp Company purchased $50,000 of SoxCompany 6% bonds, at a time when the market rate was 5%. The bondsmature on December 31, 2024, and pay interest annually on December31. Sharp plans to and has the ability to hold the bonds untilmaturity. Assume that Sharp uses the effective interest method toamortize any premium or discount on investments in bonds. AtDecember 31, 2020, the bonds are quoted at 98. a. Prepare the entryfor the purchase of the debt investment on January 1, 2020. b.Prepare the entry for the receipt of interest on December 31, 2020.c. Record the entry to adjust the investment to fair value onDecember 31, 2020, if applicable
