Liu Corporation had the following transactions in debt instruments purchased to earn interest during the year ended December 31, 2024: 

Jan. 1 Purchased a 180-day (six-month) Government of Canada treasury bill for $98,039. 

June 30 Received $100,000 cash when the treasury bill matured. 

July 5 Purchased a money-market fund for $25,000. 

Oct. 1 Cashed in the money-market fund, receiving $25,185. 

1 Purchased a six-month, 3% term deposit for $75,000. 

Dec. 31 Accrued interest on the term deposit.

Instructions 

a. Record the transactions. 

b. Show the financial statement presentation of the investment at December 31 and any related accounts. 

What was the annual rate of interest earned on the treasury bill?