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What amount of interest revenue that would be recognized

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Question - On January 1, 2021, Moss Company acquires $300,000 of Adam Company's 10-year, 10% bonds at a price of $319,254 to yield 9%. Interest is payable each December 31. The bonds are classified as held-to-maturity.

Assuming that Moss Company uses the effective-interest method, what is the amount of interest revenue that would be recognized in 2022 related to these bonds?

a. $30,000

b. $31,925

c. $28,734

d. $28,619

e. $28,847

Reference no: EM132598086

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