Ximena Company purchased $2,250,000 of 8% bonds of Minho Company on January 1, 2023, paying $1,969,601. The bonds mature January 1, 2033; interest is payable each July 1 and January 1. The effective yield on the bonds is 10%. Ximena Company uses the effective-interest method and plans to hold these bonds to maturity.

What should the company record as total Interest Revenue for the first year of 2023?

Question 5 options:

a)

197,384

b)

225,000

c)

196,384

d)

180,000