5. Ryan co purchased 900000 of 10% bonds of david co on jan 1 2015, paying 846225. The bonds mature jan 1 2025; interest is payable each july 1 and january 1. The discount of 53775 provides effective yield of 11%. Ryan co uses the effective interest method and plans to hold these bonds to maturity.

5a) on july 1, 2015, ryan co should increase its debt investments account for the david co bonds by:

5b) for the year ended dec 31, 2015, ryan co should report interest revenue from the david co bonds of: