On April 1, 2012, Bering Inc. purchased $20,000 of Warner Corporation's 10-year, 8 percent bonds at par plus accrued interest. Interest is payable on June 30 and December 31. How much interest revenue should Bering report on its December 31, 2012, income statement as a result of this investment?

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Bering Inc. will receive interest for the period from April 1 to December 31, which is 9 months. The annual interest is $1,600 ($20,000 * 8%). For 9 months, the interest revenue is $1,200 ($1,600 * 9/12).