4. At December 31, 2014 the following balances existed on the books of Foxworth Corporation Bonds Payable $4,000,000 560,000 Discount on Bonds Payable Interest Payable If the bonds are retired on January 1, 2015, at 102, what will Foxworth report as a loss n redemption? $740,000 $640,000 C) $540,000 D) $400,000 E) None of the above Use the following to answer questions 5-6: Patton company purchased $900,000 of 1090 bonds of Scott Company on January 1, 201 5 The prevailing annual interest rate was l 19. The bonds mature January 1, 2025; interest is payable each July 1 and January I. Patton Company uses the effective-interest method and plans to hold these bonds to maturity 5. For the year ended December 31, 2015, Patton Company should report interest revenue from the Scott Company bonds of (nearest dollar): A) $95,781. B) $93,169. C) $93,078. D) $90,000. E) None of the above 6. On July 1, 2015, Patton Company should increase its Debt Investments account for the Scott Company bonds by A) $5,382 B) $3,084. C) $2,806 D) $1,542 E) None of the above