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Carla Vista Company purchased $ 1 2 5 0 0 0 0 of 1 0 % bonds of Sandhill Company on January 1 , 2

Carla Vista Company purchased $1250000 of 10% bonds of Sandhill Company on January 1,2025, paying $1175310. The bonds mature on January 1,2031 ; interest is payable each July 1 and January 1. The discount of $74690 provides an effective yield of 11%. Carla Vista uses the effective-interest method and plans to hold these bonds to maturity. For the year ended December 31,2025, Carla Vista should report interest revenue from the Sandhill Company bonds of:
$129402.
$129280.
$125000.
$132470.
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