Use the Following Information for Questions 72 and 73

question 29

Multiple Choice

Use the following information for questions 72 and 73.
Patton Company purchased $900,000 of 10% bonds of Scott Company on January 1, 2015, paying $846,225. The bonds mature January 1, 2025; interest is payable each July 1 and January 1. The discount of $53,775 provides an effective yield of 11%. Patton Company uses the effective-interest method and plans to hold these bonds to maturity.
-For the year ended December 31, 2015, Patton Company should report interest revenue from the Scott Company bonds of:

• A) $95,382.
• B) $93,169.
• C) $93,078.
• D) $90,000.

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Definitions:

Organizational Buyers

Entities such as companies, governments, and institutions that purchase products or services in large quantities for use in production, for resale, or for operation.

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Effective presentation of a product's or service's benefits to potential customers to highlight why it is worth purchasing.

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