Question$1.$

On December $31,2015,$ Martin Corp invested in Marlin$$s $5-$year, $$200,000$ bond with a $5\%$ interest rate for $$191,575.$ The bond pays semiannual interest on June $30$th and December $31$st$.$ The fair values of the bonds at the end of $2016$~$2018$ are $$194,500,$ $$194,200,$ and $$195,750.$ Martin sold its investment in Marlin$$s bond on July $1,2019$ at $98(1)/(2)($i$.$e$.$ selling price is $=98\mathrm{.}5\%$ of the face value$).$ Please answer all following questions using Excel Template.

What is the market interest rate for Marlin$$s bond?

Prepare an amortization schedule related to the bond investment in Marlin. How does Martin$$s investment classification $($as HTM$,$ AFS, or Trading$)$ influence this amortization schedule?

Assuming the bonds are classified as held$-$to$-$maturity investments,

Prepare the journal entries on December $31,2015$

Prepare the journal entries related to the bond on December $31,2016$

Prepare the journal entries related to the bond on December $31,2017$

Prepare the journal entries related to the bond on December $31,2018$

Prepare the journal entries related to the bond on July $12019.$

Assuming the bonds are classified as AFS investment, prepare the journal entries on aforementioned dates.

Assuming the bonds are classified as Trading investment, prepare the journal entries on aforementioned dates. Question$1.$

On December $31,2015,$ Martin Corp invested in Marlin's $5-$year, $$200,000$ bond with a $5\%$ interest

rate for $$191,575.$ The bond pays semiannual interest on June ${30}^{th}$ and December ${31}^{st}.$ The fair

values of the bonds at the end of $20162018$ are $$194,500,$$$194,200,$ and $$195,750.$ Martin sold

its investment in Marlin's bond on July $1,2019$ at $\frac{981}{2}($i$.$e$.$ selling price is $=98\mathrm{.}5\%$ of the face

value$).$ Please answer all following questions using Excel Template.

What is the market interest rate for Marlin's bond?

Prepare an amortization schedule related to the bond investment in Marlin. How does Martin's

investment classification $($as HTM$,$ AFS, or Trading$)$ influence this amortization schedule?

Assuming the bonds are classified as held$-$to$-$maturity investments,

Prepare the journal entries on December $31,2015$

Prepare the journal entries related to the bond on December $31,2016$

Prepare the journal entries related to the bond on December $31,2017$

Prepare the journal entries related to the bond on December $31,2018$

Prepare the journal entries related to the bond on July $12019.$

Assuming the bonds are classified as AFS investment, prepare the journal entries on

aforementioned dates.

Assuming the bonds are classified as Trading investment, prepare the journal entries on

aforementioned dates.