Barrow Company purchased $400,000 of 10% bonds of Talent Co, on January 1, 2011, paying $376,100. The bonds mature January 1, 2021; interest is payable each July 1 and January 1. The discount of $23,900 provides an effective yield of 11%. Barrow Company uses the effective-interest method and holds these bonds for collection. For the year ended December 31, 2011, Barrow Company should report interest revenue from the Talent Co. bonds of: Select one: a.$41,409 b.$41,368 c$42,392 d.$45,000

Barrow Company purchased $400,000 of 10% bonds of Talent Co, on January 1, 2011, paying $376,100. The bonds mature January 1, 2021; interest is payable each July 1 and January 1. The discount of $23,900 provides an effective yield of 11%. Barrow Company uses the effective-interest method and holds these bonds for collection. For the year ended December 31, 2011, Barrow Company should report interest revenue from the Talent Co. bonds of: Select one: a.$41,409 b.$41,368 c$42,392 d.$45,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 16E

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