On January 3, 2024, Oriole Company acquires $410000 of Pharoah Company's 10-year, 10% bonds for $442100 to yield 9%. Interest is payable each December 31. The bonds are classified as held-to-maturity. If Oriole uses the effective-interest method, what amount of interest revenue would be recognized in 2025 for these bonds? $39790 $39680 O $41000 $44210
On January 3, 2024, Oriole Company acquires $410000 of Pharoah Company's 10-year, 10% bonds for $442100 to yield 9%. Interest is payable each December 31. The bonds are classified as held-to-maturity. If Oriole uses the effective-interest method, what amount of interest revenue would be recognized in 2025 for these bonds? $39790 $39680 O $41000 $44210
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 1MC
Question
![On January 3, 2024, Oriole Company acquires $410000 of Pharoah Company's 10-year, 10% bonds for $442100 to yield 9%. Interest
is payable each December 31. The bonds are classified as held-to-maturity. If Oriole uses the effective-interest method, what amount
of interest revenue would be recognized in 2025 for these bonds?
$39790
$39680
O $41000
$44210](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa9537efa-fcc7-4784-ac70-1d5f34c6baad%2F7f8ed6a4-8e72-4d63-bcd8-26413192e95a%2F5g5n8j_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On January 3, 2024, Oriole Company acquires $410000 of Pharoah Company's 10-year, 10% bonds for $442100 to yield 9%. Interest
is payable each December 31. The bonds are classified as held-to-maturity. If Oriole uses the effective-interest method, what amount
of interest revenue would be recognized in 2025 for these bonds?
$39790
$39680
O $41000
$44210
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