Use the Following Information for Questions

question 34

Multiple Choice

Use the following information for questions.
Patton Company purchased $400,000 of 10% bonds of Scott Co.on January 1, 2011, paying $376,100.The bonds mature January 1, 2021; interest is payable each July 1 and January 1.The discount of $23,900 provides an effective yield of 11%.Patton Company uses the effective-interest method and holds these bonds for collection.
-For the year ended December 31, 2011, Patton Company should report interest revenue from the Scott Co.bonds of:

• A)$42,392.
• B)$41,409.
• C)$41,368.
• D)$40,000.

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Definitions:

French

Relating to France or its people, language, or culture, known for its significant contributions to art, science, and philosophy, among other fields.

Dutch

Relating to the Netherlands, its people, or their language.

Trading Partners

Countries or entities that engage in the exchange of goods, services, and/or capital with one another.

English

Relates to the language originating from England, now widely spoken globally as a first or second language.