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On January 1, 2024, an investor paid $249,000 for bonds with a face amount of $300,000. The contract rate of interest is 8% while the

On January 1, 2024, an investor paid $249,000 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 2025 (assume annual interest payments and amortization)?

Multiple Choice

$25,140

Incorrect

$23,184

$24,990

$24,900

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