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I need a solution, please. 24. On October 1, 2020, Berlin Corp. purchased 250,...

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Accounting

imageI need a solution, please.

24. On October 1, 2020, Berlin Corp. purchased 250, $ 1,000,9% bonds for $ 260,000. An additional $ 7,500 was paid for the accrued interest, which is paid semi-annually on December 1 and June 1. The bonds mature on December 1, 2024 and will be held to maturity. Berlin uses the straight-line method of amortization and the amortized cost model for these bonds. Ignoring income taxes, the amount to be reported in Berlin's 2020 income statement as a result of this investment is a) $3,750. b) $ 5,025. c) $ 5,625 d) $ 6,225. Answer: b

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