Question $4$

$1$ pts

On January $1,2021,$ RR purchased $$100,000$ of Apple Company bonds at a premium of $$5,000.$ The bonds pay $7\%$ interest but were purchased when the market interest rate was $6\%$ for bonds of similar risk and maturity. The bonds pay interest semiannually on June $30$ and December $31$ of each year. RR accounts for the bonds as a trading security. On December $31,2021,$ journal entry to record the second period of interest, RR would record a credit to interest revenue of:

A$)$ $$3,336.$

B$)$ $$3,140.$

C$)$ $$3,000.$

D$)$ $$3,500.$