On July 1, 2010, Tom Company purchased $60, 000 of ten-year 6% bonds of Sawyer, Inc., for $51, 850, to be held to maturity.Interest is payable semiannually on June 30 and December 31.The effective yield on the investment is 8%.What amount of interest revenue should Tom record for the six-month period ended December 31, 2010?
A) $2, 063.04
B) $2, 084.96
C) $2, 074.00
D) $2, 400.00
Correct Answer:
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