Wheeler Company purchased $4,000,000 of Duggen Companys 8% bonds, due on July 1, 2019. The bonds, which
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Wheeler Company purchased $4,000,000 of Duggen Company’s 8% bonds, due on July 1, 2019. The bonds, which pay interest semiannually on January 1 and July 1, were purchased for $3,500,000 to yield 10%. Determine the amount of interest revenue Wheeler should report on its income statement for the year ended December 31, 2012.
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