Use the following information to answer questions
On November 1, 2010, Alejandro Corporation purchased $300,000 of Beluga Corporation's 5%, 10-year bonds payable. Interest is payable on April 30 and October 31. Alejandro's year-end is December 31. Alejandro uses the straight-line method to amortize and bond discounts or premiums.
-If the bonds were purchased for $304,200, how much bond interest revenue should Alejandro recognize in 2010?
A) $1,110
B) $1,250
C) $1,390
D) $2,430
E) $7,500
Correct Answer:
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