HP Company purchased $1,200,000 of 10% bonds of Dell Co. on January 1, 2016, paying $1,128,300. The bonds 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. bonds of: A. $127,176. B. $124,227. C. $124,104. D. $120,000