On January $1,2023,$ Martinez Limited paid $$521,770\mathrm{.}20$ for $12\%$ bonds with a maturity value of $$485,000.$ The bonds provide the bondholders with a $10\%$ yield. They are dated January $1,2023,$ and mature on January $1,2028,$ with interest receivable on December$31$ of each year. Martinez applies ASPE using the effective interest method, and has a December $31$ year end. Assume that Martinez hopes to make a gain on the bonds as interest rates are expected to fall. Martinez accounts for the bonds at fair value with changes in value taken to net income, and separately recognizes and reports interest income. The fair value of the bonds at December $31$ of each year end is as follows:On January $1,2023,$ Martinez Limited paid $$521,770\mathrm{.}20$ for $12\%$ bonds with a maturity value of $$485,000.$ The bonds provide the bondholders with a $10\%$ yield. They are dated January $1,2023,$ and mature on January $1,2028,$ with interest receivable on December$31$ of each year. Martinez applies ASPE using the effective interest method, and has a December $31$ year end. Assume that Martinez hopes to make a gain on the bonds as interest rates are expected to fall. Martinez accounts for the bonds at fair value with changes in value taken to net income, and separately recognizes and reports interest income. The fair value of the bonds at December $31$ of each year end is as follows: