o On January 1, 2006, Jamona Corp. purchased 12% bonds, having a maturity value of $300,000, for $322,744. The bonds provide the bondholders with a...

On January 1, 2006, Jamona Corp. 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, 2006, and mature January 1, 2011, with interest receivable December 31 of each year. The company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale. The fair value of the bonds at December 31 of each year is as follows:2006 – $320,5002007 – $309,0002008 – $308,0002009 – $310,0002010 – $300,000