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At the beginning of 2 0 1 2 , Winston Corporation issued 1 0 % bonds with a face value of $ 1 , 2

At the beginning of 2012, Winston Corporation issued 10% bonds with a face value of $1,200,000. These bonds mature in five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for $1,111,680 to yield 12%. Winston uses a calendar-year reporting period. Using the effective-interest method of amortization, what amount of interest expense should be reported for 2012?(Round your answer to the nearest dollar).
$133,000
$133,400
$133,804
$137,664
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