On November 1, 2009, WC Purchased CX, 10-Year, 7%, Bonds

question 47

Multiple Choice

On November 1, 2009, WC purchased CX, 10-year, 7%, bonds with a face value of $100,000 for $96,000.The bonds are intended to be held to maturity.An additional
$2,333 was paid for the accrued interest.Interest is payable semi-annually on January 1 and July 1.The bonds mature on July 1, 2016.WC uses the straight-line method of amortization.Ignoring income taxes, the amount of interest revenue reported in WC's 2019 income statement (year-end December 31) as a result of WC's long-term bond investment in CX was:

• A)$1,120
• B)$1,267
• C)$1,167
• D)$1,067

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