Pharoah Company purchased $1700000 of 11% bonds of Scott Company on January 1, 2021, paying $1602506. The bonds mature January 1, 2031; interest is payable each July 1 and January 1. The discount of $97494 provides an effective yield of 12%. Pharoah Company uses the effective-interest method and plans to hold these bonds to maturity.

For the year ended December 31, 2021, Pharoah Company should report interest revenue from the Scott Company bonds of:

a. $187000.

b. $196749.

c. $192300.

d. $192459.