Final answer:
The interest revenue for Richmond Company in 2011 is $1,320 and in 2012 is $440 using the simple interest formula. It seems there might be a mistake in the question details as the provided options do not match the correct calculations.
Step-by-step explanation:
The question asks about calculating interest revenue for a company based on a loan with a simple interest rate. To find the interest revenue for Richmond Company on a $11,000 loan at 16% annual interest rate, we use the simple interest formula I = PRT, where I is the interest, P is the principal amount, R is the rate, and T is the time in years.
For 2011, since the loan was made on April 1st and the interest needs to be calculated until December 31st, the time period is 9 months or 0.75 years. Therefore, the interest for 2011 would be:
I = $11,000 × 16% × 0.75
I = $11,000 × 0.16 × 0.75 = $1,320
For 2012, the loan still has 3 months to go until it completes a full year on April 1st. So, the time period is 3 months or 0.25 years, making the interest for 2012:
I = $11,000 × 16% × 0.25
I = $11,000 × 0.16 × 0.25 = $440
Therefore, the amount of interest revenue that Richmond would report in 2011 and 2012 would be $1,320 and $440, respectively, which is not one of the options provided in the question. It appears there may have been a mistake in the question details (e.g., loan amount should possibly be $1,100 instead of $11,00), as none of the options match these calculations.