Use the Following Information to Answer the Question(s)below

question 13

Multiple Choice

Use the following information to answer the question(s) below.
Pfadt Inc.had $600,000 par of 8% bonds payable outstanding on January 1,2011 due January 1,2015 with an unamortized discount of $12,000.Senat is a 90%-owned subsidiary of Pfadt.On January 2,2011,Senat Corporation purchased $150,000 par value of Pfadt's outstanding bonds for $152,000.The bonds have interest payment dates of January 1 and July 1.Straight-line amortization is used.
-Bond Interest Receivable for 2011 of Pfadt's bonds on Senat's books was

• A)$5,400.
• B)$6,000.
• C)$10,800.
• D)$12,000.

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Definitions:

Interest Rate

The percentage charged on the total amount of borrowed money or paid on investments, over a specific time frame.

Credit Rating

An assessment of the creditworthiness of a borrower in terms of their ability to repay the debt.

Tax Status

A classification used to determine the amount of tax an individual or entity owes to the government, based on factors like income, marital status, and deductions.

Credit Rating

An assessment of the creditworthiness of a borrower in terms of their ability to repay a loan or debt.