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Hermosa Vista Company issued $220,000 5-year, 7.50% bonds and received $224,510 in cash. The market rate of interest when the bonds were issued was 7.00%.
Hermosa Vista Company issued $220,000 5-year, 7.50% bonds and received $224,510 in cash. The market rate of interest when the bonds were issued was 7.00%. 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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