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Sunland Company purchased $1800000 of 9% bonds of Scott Company on January 1, 2021, paying $1687840. The bonds mature January 1, 2031; interest is payable
Sunland Company purchased $1800000 of 9% bonds of Scott Company on January 1, 2021, paying $1687840. The bonds mature January 1, 2031; interest is payable each July 1 and January 1. The discount of $112160 provides an effective yield of 10%. Sunland Company uses the effective interest method and plans to hold these bonds to maturity. For the year ended December 31, 2021, Sunland Company should report interest revenue from the Scott Company bonds of: $162000. $173216. $168954. $168784
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