On January 1, 2024, an investor paid $311,000 for bonds with a face amount of $375,000. 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)?

rev: 02_26_2021_QC_CS-252921

Multiple Choice

• $24,880.

• $31,100.

• $30,000.

• $37,500.