2) Lids, Inc. has the following items in its portfolio of trading securities at 1/1/2020:

Rose common stock: $172,500

Pansy, Inc. 5%, 6 year, $150,000, zero coupon bonds $129,576 (amortized cost)

The security fair value adjustment account had a $1,500 (debit) balance before adjustments.

At year end, market prices and other data are as shown below:

Market price

Rose common stock: $167,750

Pansy, Inc. bonds: $138,680 amortized cost: $136,055

i) What amount of interest income would be recognized (recorded) on the Pansy bonds at year-end 2020?

Interest revenue interest expense

Interest income 2020: ____________________________________