On January $1,2021,$ Instaform, Inc., issued $12\%$ bonds with a face amount of $$40$ million, dated January $1.$ The bonds mature in $2040(20$ years$).$ The market yield for bonds of similar risk and maturity is $14\%.$ Interest is paid semiannually. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)($Use appropriate factor$($s$)$ from the tables provided.$)$

Required:

$1-$a$.$ Determine the price of the bonds at January $1,2021.$

$1-$b$.$ Prepare the journal entry to record their issuance by Instaform.

$2-$a$.$ Assume the market rate was $11\%.$ Determine the price of the bonds at January $1,2021.$

$2-$b$.$ Assume the market rate was $11\%.$ Prepare the journal entry to record their issuance by Instaform.

$3.$ Assume Broadcourt Electronics purchased the entire issue in a private placement of the bonds. Using the data in requirement $2,$ prepare the journal entry to record the purchase by Broadcourt.