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HP Company purchased $1,200,000 of 10% bonds of Dell Co. on January 1, 2016, paying $1,128,300. The boods mature January 1, 2026; interest is payable
HP Company purchased $1,200,000 of 10% bonds of Dell Co. on January 1, 2016, paying $1,128,300. The boods mature January 1, 2026; interest is payable each July 1 and January 1. The bonds provide an effective yield of 11% HP Company holds these bonds for collection. For the year ended December 31, 2016, HP Company should report interest revenue from the Dell Co. boads of A. $127,176, B. $124,227 C. $124,104 D. $120,000
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