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

$2024$

July $1$ Purchased $$22$ million of Bracecourt Corporation $12\%$ debentures, due in $20$ years $($June $30,2044),$ for $$21\mathrm{.}1$ million. Interest is payable on January $1$ and July $1$ of each year.

October $1$ Purchased $$36$ million of $14\%$ Framm Pharmaceuticals debentures, due May $31,2034,$ for $$37,856,000$ plus accrued interest. Interest is payable on June $1$ and December $1$ of each year.

December $1$ Received interest on the Framm bonds.

December $31$ Accrued interest.

$2025$

January $1$ Received interest on the Bracecourt bonds.

June $1$ Received interest on the Framm bonds.

July $1$ Received interest on the Bracecourt bonds.

September $1$ Sold $$18\mathrm{.}0$ million of the Framm bonds at $102$ plus accrued interest.

December $1$ Received interest on the remaining Framm bonds.

December $31$ Accrued interest.

$2026$

January $1$ Received interest on the Bracecourt bonds.

February $28$ Sold the remainder of the Framm bonds at $103$ plus accrued interest.

December $31$ Accrued interest.

Required:

Prepare the appropriate journal entries for these long$-$term bond investments.

By how much will Livermore Labs$$ earnings increase in each of the three years as a result of these investments? $($Ignore income taxes.$)$

$*$NB: $-$ there should be entries for discount on bonds and premium on bonds, also amortization usinng STRAIGHT$-$LINE method to record real interest revenues. otherwise the solutions will ne incorrect.

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