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Fifle Company purchased a copyright from Filene Corporation on January 1, 20X4. Fifle agreed to make payments of $10,000 per year for 5 years, with

Fifle Company purchased a copyright from Filene Corporation on January 1, 20X4. Fifle agreed to make payments of $10,000 per year for 5 years, with the first payment being made immediately. The copyright will also be amortized over 5 years. Assume an interest rate of 7 percent per year is appropriate. What interest expense would be reported on December 31, 20X5?

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