On January 1, 2017, Stellar Company acquires $340,000 of Spiderman Products, Inc., 9% bonds at a price of $323,383. Interest is received on January 1 of each year, and the bonds mature on January 1, 2020. The investment will provide Stellar Company a 11% yield. The bonds are classified as held-to-maturity.

(a) Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the straight-line method. Schedule of Interest Revenue and Bond Discount Amortization Straight-line Method Bond Purchased to Yield Bond Discount Carrying Amount Cash Received Interest Amortization of Bonds Date Revenue 323,383 1/1/17 1/1/18 30,600 1/1/19 30,600 1/1/20 30,600