On january 1, 2020, headland company purchased 12% bonds, having a maturity value of $312,000 for $335,654.22. the bonds provide the bondholders with a 10% yield. they are dated january 1, 2020, and mature january 1, 2025, with interest received on january 1 of each year. headland company uses the effective-interest method to allocate unamortized discount or premium. the bonds are classified as available-for-sale category. the fair value of the bonds at december 31 of each year-end is as follows. 2017 $333,600 2020 $322,000
2018 $320,900 2021 $312,000
2019 $320,000
(a) prepare the journal entry at the date of the bond purchase.
(b) prepare the journal entries to record the interest revenue and recognition of fair value for 2017.
(c) prepare the journal entry to record the recognition of fair value for 2018.

Aiden is 19 years old, unmarried, and was a first-year full-time student working on a degree in accounting during 2018. he has never had a felony drug conviction. aiden did not provide more than half of his own support and can be claimed as a dependent by his mother. aiden’s income was $4,000 in wages working as a part-time cook at a fast food restaurant. aiden received form 1098-t indicating $5,000 for payments received for qualified tuition and related expenses in box 1. he received $8,500 in scholarships and grants, which was reported in box 5. aiden’s scholarship was used to pay for room and board, tuition, and books. the cost of his books was $845. aiden is a u. s. citizen with a valid social security number. 1. which of the following statements is true? a. the portion of the scholarship that was not used for qualified educational expenses must be included in aiden's income. b. the amount spent on books is not a qualified education expense. c. the taxable portion of the scholarship must be reported on aiden's mother’s return. d. none of aiden's scholarship is taxable.