On July 1, 2020, RAX Inc. purchased $100,000 of Shelf Corp. bonds at a discount rate of $95,000. The Shelf bonds have a stated 6% interest rate but were purchased when the market interest rate was 7%. The bonds pay interest semi-annually on June 30 and December 31 of each year. RAX accounts for the bonds as a held-to-maturity (HTM) investment and uses the effective interest method. How much Interest Revenue should RAX record for the December 31, 2020 journal entry?

Which of the following statements is (are) true? i. free entry to a perfectly competitive industry results in the industry's firms earning zero economic profit in the long run, except for the most efficient producers, who may earn economic rent. ii. in a perfectly competitive market, long-run equilibrium is characterized by lmc < p < latc. iii. if a competitive industry is in long-run equilibrium, a decrease in demand causes firms to earn negative profit because the market price will fall below average total cost.