On January 1, 2021, an investor paid $291,000 for bonds with a face amount of $300,000. The contract rate of interest is 8% while the current market rate of interest is 10%. Using the effective interest method, how much interest income is recognized by the investor in 2022 (assume annual interest payments and amortization)?

Multiple Choice

• $23,280.

• $25,140.

• $29,100.

• $29,610.