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Sheridan Company purchased $1750000 of 10% bonds of Scott Company on January 1,2021 , paying $1645434. The bonds mature January 1,2031 ; interest is payable
Sheridan Company purchased $1750000 of 10% bonds of Scott Company on January 1,2021 , paying $1645434. The bonds mature January 1,2031 ; interest is payable each July 1 and January 1 . The discount of $104566 provides an effective yield of 11%. Sheridan Company uses the effective-interest method and plans to hold these bonds to maturity. For the year ended December 31,2021, Sheridan Company should report interest revenue from the Scott Company bonds of: $175000.$185457.$181163.$180998
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