Use the Following Information to Answer Questions

Multiple Choice

Use the following information to answer questions
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 for $295,500, how much bond interest revenue should Alejandro recognize in 2010?

A) $1,100
B) $1,250
C) $1,400
D) $2,575
E) $7,500