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On January 1, 2020, Culver Company acquires $210,000 of Spiderman Products, Inc., 9% bonds at a...

On January 1, 2020, Culver Company acquires $210,000 of Spiderman Products, Inc., 9% bonds at a price of $199,736. Interest is received on January 1 of each year, and the bonds mature on January 1, 2023. The investment will provide Culver Company a 11% yield. The bonds are classified as held-to-maturity.

A) Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the straight-line method.

B) Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the effective-interest method.

C) Prepare the journal entry for the interest revenue and discount amortization under the straight-line method at December 31, 2020.

D) Prepare the journal entry for the interest revenue and discount amortization under the effective-interest method at December 31, 2021.

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