On January 1, 2021, Lyles Limeade issues 4%, 10-year bonds with a face amount of $90,000 for

Question:

On January 1, 2021, Lyle’s Limeade issues 4%, 10-year bonds with a face amount of $90,000 for $82,985, priced to yield 5%. Interest is paid semiannually. What amount of interest expense will be recorded in the December 31, 2021, annual income statement?

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