On February 1, 2011, Cromley Motor Products issued 6% bonds, dated February 1, with a face amount of

On February 1, 2011, Cromley Motor Products issued 6% bonds, dated February 1, with a face amount of $70 million. The bonds mature on January 31, 2015 (4 years). The market yield for bonds of similar risk and maturity was 8%. Interest is paid semiannually on July 31 and January 31. Barnwell Industries acquired $70,000 of the bonds as a long-term investment. The fiscal years of both firms end December 31If you want the formulas and any calculations, select the corresponding cell and press F2(Function Key on key board),It will show all calculations and formulas AutomaticallyPlease Give Me the…