Question 35

On September 1, 2015, Nils purchased $500,000, 8% bonds, paying $461,500 plus the accrued interest. The bonds pay interest annually on January 1. Effective rate is 10%. On the 12/31/15 balance sheet, Interest Receivable is:

Select one:

a. $16,666

b. $10,000

c. $13,333

d. $20,000

e. $40,000