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Crawford Corporation issues $ 1 0 0 , 0 0 0 of 7 % bonds on January 1 , Year 1 . The bonds have

Crawford Corporation issues $100,000 of 7% bonds on January 1, Year 1. The bonds have a six-year term and pay interest semiannually on June 30 and December 31 each year. Assuming a market interest rate of 6%, interest expense associated with the December 31, Year 1 payment is:

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