Net income will be understated in 2019 and overstated in 2020 Net income will be correct in 2019 and 2020 W QUESTION 37 On January 1, 2021, Rocket Rentals purchased $100,000 face value of Zues Company bonds at a premium of 55,000. The Zues bonds pay 7% interest but were purchased when the market interest rate was 6% for bonds of similar risk and maturity. The bonds pay interest semiannually on June 30 and December 31 of each year. Rocket accounts for the bonds as a held-to-maturity investment, and uses the effective interest method. On June 30, 2021, Rocket would record a credit to interest revenue of: $3,150 $3,000. $3,500 $3,675 QUESTION 38 On July 1, 2021, Markwell Company acquired equipment. Markwell paid $160,000 in cash on July 1, 2021, and signed a S640.000 noninterest-bearing Acti Click Save and Submit to save and submit. Click Save All Answers to save all answers. Go to Save All Answers Close Windo