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Hermosa Vista Company issued $160,000 5-year, 6.50% bonds and received $163,370 in cash. The market rate of interest when the bonds were issued was 6.00%.
Hermosa Vista Company issued $160,000 5-year, 6.50% bonds and received $163,370 in cash. The market rate of interest when the bonds were issued was 6.00%. What is the amount of interest expense to be recorded for the first annual interest period if the company uses simplified effective-interest amortization?
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$10,400.00
$9,600.00
$10,619.05
$9,802.20
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