On January 1, 2023, White River Corporation paid $2,499,757 to acquire bonds of Precision Investment Corp with a par value of $2,480,000. The annual contract rate on the bonds is 7.5% and interest is paid semiannually on June 30 and December 31. The bonds mature after three years. The market rate of interest was 7.2%. White River Corporation intends to hold the bonds until maturity.

Required

1. Prepare an amortization schedule for the investment showing only 2023.

2. Prepare White River’s entries to record

(a) The purchase of the bonds, 

(b) The receipt of the first two interest payments.

3. Show how the investment will appear on the December 31, 2023, balance sheet.