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How much interest revenue should report on the bonds

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Problem 1: On January? 1, Year? 1, Gibson Corporation purchased bonds issued by Williamson Company. These bonds were classified as held-to-maturity securities. The face value of these bonds is  $ 300,000?, pay 8?% interest and were purchased to yield 6%. The bonds mature in 10 years and pay interest on an annual basis. If Gibson Corporation paid $ 344,161 for these? bonds, how much interest revenue should it report on the bonds at December? 31, Year? 1? Assume that Gibson used the effective interest method.

Reference no: EM132791806

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