On january 1, 2017, hi and lois company purchased 12% bonds, having a maturity value of $300,000, for $322,744.44. the bonds provide the bondholders with a 10% yield. they are dated january 1, 2017, and mature january 1, 2022, with interest received on january 1 of each year. hi and lois 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 $320,500 2020 $310,000 2018 $309,000 2021 $300,000 2019 $308,000 (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.

Verizon communications, inc., provides the following footnote relating to its leasing activities in its 10-k report. the aggregate minimum rental commitments under noncancelable leases for the periods shown at december 31, 2010, are as follows: years (dollars in millions) capital leases operatingleases 2011 $97 $1,898 2012 74 1,720 2013 70 1,471 2014 54 1,255 2015 42 1,012 thereafter 81 5,277 total minimum 418 $ 12,633 rental commitments less interest and (86) executory costs present value of 332 minimum lease payments less current (75) installments long-term obligation $257 at december 31, 2010 (a) confirm that verizon capitalized its capital leases using a rate of 7.4 %. (b) compute the present value of verizon's operating leases, assuming an 7.4% discount rate and rounding the remaining lease term to 3 decimal places. (use a financial calculator or excel to compute. do not round until your final answers. round each answer to the nearest whole number.)