on july 1 of year 1, west company purchased for cash, 22, $10,000 bonds of north corporation at a market rate of 6%. the bonds pay 5% interest, payable on a semiannual basis each july 1 and january 1, and mature in three years on july 1. the bonds are classified as trading securities. west company's annual reporting period ends december 31. assume the effective interest method of amortization of any discounts or premiums.