Madox Company purchased $$400,000$ of $10\%$ bonds of Scott Co$.$ on January $1,2011,$ $$376,100.$ The bonds mature January $1,2021$ ; interest is payable each July $1$ and Janu The discount of $$23,900$ provides an effective yield of $11\%.$ Madox Company uses the effective$-$interest method and holds these bonds for collection.

On July $1,2011,$ Madox Company should increase its Debt Investments account Scott Co$.$ bonds by

Select one:

a$.$ $$2,392.$

b$.$ $$686.$

c$.$ $$1,371.$

d$.$ $$1,196$