Final answer:
The correct answer is option c.$49480. The amount of interest revenue recognized in 2021 related to these bonds is $23,829.
Step-by-step explanation:
To calculate the interest revenue for 2021, we first need to determine the interest payment for the bonds. The interest payment can be calculated by multiplying the face value of the bonds ($520,000) by the stated interest rate (10%). So, the annual interest payment is $52,000.
Next, we need to calculate the bond's carrying value at the beginning of 2021. The carrying value is the initial investment of $552,090 minus the amortized premium. To calculate the amortized premium, we subtract the face value of the bonds from the initial investment and spread it over the remaining 9 years (10 - 1). The annual amortization of the premium is $552,090 - $520,000 = $32,090. So, the carrying value at the beginning of 2021 is $552,090 - ($32,090 * 9) = $264,810.
Since the bonds are classified as held-to-maturity, we use the effective-interest method to calculate interest revenue. The effective-interest method allocates interest revenue based on the carrying value of the bonds. In 2021, the interest revenue would be 9% of the carrying value, which is $264,810 * 9% = $23,829.
Therefore, the amount of interest revenue recognized in 2021 related to these bonds is $23,829, which is not among the given options. It seems that none of the options provided in the question matches the correct amount of interest revenue.