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Patton Company purchased $600,000 of 10% bonds of Scott Co. on January 1, 2013, paying...

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Accounting

Patton Company purchased $600,000 of 10% bonds of Scott Co. on January 1, 2013, paying $564,150. The bonds mature January 1, 2023; interest is payable each July 1 and January 1. The discount of $35,850 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, 2013, Patton Company should report interest revenue from the Scott Co. bonds of: (Points : 2)

$63,588. $62,113. $62,052. $60,000.

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