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On January 1, 2024, an investor paid $278,000 for bonds with a face amount of $335,000. The stated rate of interest is 8% while the

On January 1, 2024, an investor paid $278,000 for bonds with a face amount of $335,000. The stated 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 2024 (assume annual interest payments and amortization)?

Multiple Choice $26,800. $33,500. $22,240. $27,800.

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