On 12/31/2018 Frateschi Model Trains, Inc. (CHOO) issued an 8.5% bond, with nominal value of $300,000, due on 12/31/2023, interest was to be paid semi-annually starting on 7/1/2019. Total proceeds...

Extracted text: On 12/31/2018 Frateschi Model Trains, Inc. (CHOO) issued an 8.5% bond, with nominal value of $300,000, due on 12/31/2023, interest was to be paid semi-annually starting on 7/1/2019. Total proceeds from this bond were $297,014.41. CHOO redeemed these bonds on June 30, 2022, when the YTM was 9.0%. Compute the fair value of CHOO's bonds on that date and prepare an entry to redeem the bonds entirely on June 30, 2022, at the fair value.