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On January 1, 2021, an investor paid $294,000 for bonds with a face amount of $314,000. The contract rate of interest is 7% while the

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On January 1, 2021, an investor paid $294,000 for bonds with a face amount of $314,000. The contract rate of interest is 7% 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)? (Round your answer to the nearest dollar amount.) Multiple Choice $30,142 $29.400. $20,580 $16.282

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