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A corporation issued $600,000, 12%, 5-year bonds on January 1, 2014 for $648,666, which reflects an effective-interest rate of 10%. Interest is paid semiannually on
A corporation issued $600,000, 12%, 5-year bonds on January 1, 2014 for $648,666, which reflects an effective-interest rate of 10%. Interest is paid semiannually on January 1 and July 1. If the corporation uses the effective-interest method of amortization of bond premium, the amount of bond interest expense to be recognized on July 1, 2014, is
Select one:
A. $30,000.B. $21,000.C. $32,434.D. $22,703.E. None of the above.
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