Question: On January 1 , 2 0 2 5 , Long Live sold $ 3 , 5 0 0 , 0 0 0 of 7 %

On January 1,2025, Long Live sold $3,500,000 of 7% bonds to T-Swift Fans Inc. The bonds mature on December 31,2029(5 years). For bonds of similar risk and maturity, the market yield was 9%. Interest is paid semiannually on June 30 and December 31.
T-Swift Fans Inc. purchased the bonds as an investment and plans to hold the bonds for approximately 2 years.
The fair value of the bonds on 12/31/25 was $2,999,000.
T-Swift Fans Inc.s fiscal year end is December 31 and 2025 was its first year of business.

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