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Question 32

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On November 1, 2010, Alejandro Corporation purchased $300,000 of Beluga Corporation's 5%, 10-year bonds payable. Interest is payable on April 30 and October 31. Alejandro's year-end is December 31. Alejandro uses the straight-line method to amortize and bond discounts or premiums.
-If the bonds were purchased at face value, how much bond interest revenue should Alejandro recognize in 2010?


A) $1,500
B) $2,500
C) $7,500
D) $15,000
E) none of the above

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