Patton Company purchased $600,000 of 10% bonds of Scott Co. on January 1, 2013, paying $564,150. The bonds mature January 1, 2023; interest is payable each July 1 and January 1. The discount of $35,850 provides an effective yield of 11%. Patton Company uses the effective-interest method and plans to hold these bonds to maturity. On July 1, 2013, Patton Company should increase its Debt Investments account for the Scott Co. bonds by (Points : 2)

$3,588. $2,056. $1,794. $1,028.