1. On July 1, 2020, Concord Company purchased $4,070,000 of Duggen Companys 8% bonds, due on July 1, 2027. The bonds, which pay interest semiannually on January 1 and July 1, were purchased for $3,550,000 to yield 10%. Determine the amount of interest revenue Concord should report on its income statement for the year ended December 31, 2020.

Interest revenue

$

2. On July 1, 2020, Whispering Company purchased $3,890,000 of Duggen Companys 8% bonds, due on July 1, 2027. The bonds, which pay interest semiannually on January 1 and July 1, were purchased for $3,430,000 to yield 10%. These bonds are classified as available-for sale and they have a fair value at December 31, 2020, of $3,534,000, prepare the journal entry (if any) at December 31, 2020, to record this transaction