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On July 1, 20X1, Hathaway Inc

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On July 1, 20X1, Hathaway Inc. purchased a $100,000, five-year, 6% bond when the market rate of interest was 7%. Interest was payable semi-annually on June 30 and December 31. The price paid for the bond was $95,842. Hathaway has a December 31 year end and reports its financial results in accordance with IFRS. Hathaway irrevocably elects to classify this investment at FVPL to significantly reduce a measurement inconsistency. On December 31, 20X1, the bond was actively trading for $96,900. 

How much income will Hathaway recognize on its financial statement for the year ended December 31, 20X1, relating to this investment? 

a) $1,058 

b) $3,355 

c) $4,058 

d) $4,413