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Ivanhoe Company purchased $1000000 of 9% bonds of Scott Company on January 1, 2021, paying $937689. The bonds mature January 1, 2031; interest is payable
Ivanhoe Company purchased $1000000 of 9% bonds of Scott Company on January 1, 2021, paying $937689. The bonds mature January 1, 2031; interest is payable each July 1 and January 1. The discount of $62311 provides an effective yield of 10%. Ivanhoe Company uses the effective-interest method and plans to hold these bonds to maturity. For the year ended December 31, 2021, Ivanhoe Company should report interest revenue from the Scott Company bonds of: $93863 $90000. $96231. $93768
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