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The following information pertains to Pilko Company Inc.'s investment in bonds available for sale:
The following information pertains to Pilko Company Inc.’s investment in bonds available for sale:DateAcquiredCostFairValueDecember 31, 2012January 1, 2012$90,000$120,000•&νβσπ;&νβσπ;&νβσπ;&νβσπ;&νβσπ; The bonds have a face value of $100,000.•&νβσπ;&νβσπ;&νβσπ;&νβσπ;&νβσπ; The bonds pay interest annually at December 31 (8 percent annual interest) and are due in ten years.•&νβσπ;&νβσπ;&νβσπ;&νβσπ;&νβσπ; Pilko Company uses the straight-line method to amortize discounts or premiums.•&νβσπ;&νβσπ;&νβσπ;&νβσπ;&νβσπ; Pilko Company’s 2012 net income after considering the effects of the investment was $200,000.What is the amount of interest income for the year ended December 31, 2012?
