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Recording Interest revenue from bonds

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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 plands to hold these bonds to maturity.

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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The expert examines recording interest revenues from bonds.

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