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Use the Following Information to Answer Bellow Questions

Question 26

Multiple Choice

Use the following information to answer bellow Questions:
On January 1, 2019, Ola Company paid $388,900 for a $400,000 face value 3% corporate bond yielding 4%, interest paid annually on December 31, and classified it as held-to-maturity. Ola's reporting year ends December 31.
-On its 2019 income statement, Ola reports interest revenue on the corporate bond of:


A) $12,000
B) $11,667
C) $15,556
D) $16,000

Correct Answer:

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