Blossom Company purchased $850000 of 9% bonds of Scott Company on January 1, 2021, paying $797036. The bonds mature January 1, 2031; interest is payable each July 1 and January 1. The discount of $52964 provides an effective yield of 10%. Blossom Company uses the effective-interest method and plans to hold these bonds to maturity. For the year ended December 31, 2021, Blossom Company should report interest revenue from the Scott Company bonds of: $81796. $79784. $79704. $76500.

$79784

Explanation:

Calculation to determine what Blossom Company should report interest revenue from the Scott Company bonds

First step is to calculate the increase in Held-to-Maturity Debt Securities account

Held-to-Maturity Debt Securities=($797036 × 10%/2) - ($850000 ×9%/2)

Held-to-Maturity Debt Securities=($797036 × 5%) - ($850000 ×4.5%)

Held-to-Maturity Debt Securities=$39,851.8-$38,250

Held-to-Maturity Debt Securities=$1,602

Now let calculate the Interest Revenue

Interest Revenue=[$797036 × (10%/2)]+[($797036 + $1,602) × 10%/2]

Interest Revenue=[$797036 × (10%/2)]+[($797036 + $1,602) × .05]

Interest Revenue= $39,852+$39,932

Interest Revenue= = $79784

Therefore Blossom Company should report interest revenue from the Scott Company bonds of $79784

what are the options

explanation:

c

explanation:

c because the item on a bank statement is also referred to as an account statement. in addition, it provides the beginning balance, ending balance, statement date, transaction date for each transaction, payee, customer name and address, statement period, the account holder's account number, and the bank's customer service number