INTERMEDIATE ACCOUNTING 2 PLZ SOLVE URGENTLY

On July 1, 2016, Alba Co. purchased Babco, Inc., 10-year, 99, bonds with a face value of $500,000, for $470,000 (a 10% effective interest rate). Interest is payable semiannually on January 1 and July 1. The bonds mature on July 1, 2026. Alba uses the effective interest method of amortization. The amount reported in Alba's 2016 income statement as a result of its heid-for-collection investment in Babco was: 0.5 points Save Answer A. $23,500. B. $21,150. C. $22,500. D. $20,000