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Ivanhoe Company purchased $1600000 of 10% bonds of Scott Company on January 1, 2018, paying 1506375. The bonds mature January 1, 2028 Interest is payable

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Ivanhoe Company purchased $1600000 of 10% bonds of Scott Company on January 1, 2018, paying 1506375. The bonds mature January 1, 2028 Interest is payable each July 1 and January 1 The discount of $91625 provides an effective yield of 11 Ivanhoe Company uses the effective method and plans to hold these bonds to maturity For the year ended December 31, 2018, Ivanhoe Company should report terest revenue from the Scott Company bonds of $169163

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