Exercise 0-8

January 1, 2020, an investor company acquires $238,000 of the investee companys 4% bonds at a price of $188,000. Interest is received on January 1 of each year, and the bonds mature on January 1, 2030. The investment will provide the investor a 11% yield (assumed for ease of computation. Please do not attempt computations beyond years necessary). The bonds are classified as held-to-maturity.

Applying the effective-interest method, for the year of 2020, the investor company will record Interest Revenue of $__________.