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Bonds with a stated interest rate of 9% and a face value totaling $600,000 were issued at 104 on January 1, 2011, implying an annual

Bonds with a stated interest rate of 9% and a face value totaling $600,000 were issued at 104 on January 1, 2011, implying an annual market interest rate of 8%. Assuming that interest is computed annually, at what carrying value should the total liability for these bonds be reported two years later on December 31, 2012, if the effective-interest method of amortization is used?

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