On May 1, 2016, Walloon purchased $100,000, 8% bonds at 102 plus accrued interest. The bonds mature on 1/1/19. Straight-line amortization is used. Annual interest is collected each December 31. Walloon should collect on 12/31/16:

Select one:

a. $8,000

b. $4,833

c. $2,667

d. $4,000

e. $5,333

On September 1, 2016, Walloon purchased $100,000, 8% bonds at 102 plus accrued interest. The bonds mature on 1/1/19. Straight-line amortization is used. Annual interest is collected each January 1. Walloon should report on the 12/31/16 balance sheet an Interest Receivable of:

Select one:

a. $8,000

b. $4,833

c. $2,667

d. $4,000

e. $5,333