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Carla Vista Company purchased $1850000 of 11% bonds of Scott Company on January 1, 2021,...

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Accounting

Carla Vista Company purchased $1850000 of 11% bonds of Scott Company on January 1, 2021, paying $1743903. The bonds mature January 1, 2031; interest is payable each July 1 and January 1. The discount of $106097 provides an effective yield of 12%. Carla Vista Company uses the effective-interest method and plans to hold these bonds to maturity. For the year ended December 31, 2021, Carla Vista Company should report interest revenue from the Scott Company bonds of:

$214110.

$209268.

$209441.

$203500.

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