Carla Vista Company purchased $1850000 of 11% bonds of Scott Company on January 1, 2021, paying $1746375. The bonds mature January 1, 2031; interest is payable each July 1 and January 1. The discount of $103625 provides an effective yield of 12%. Carla Vista Company uses the effective-interest method and plans to hold these bonds to maturity.

On July 1, 2021, Carla Vista Company should increase its Debt Investments account for the Scott Company bonds by

$3033.

$10363.

$5181.

$6065.