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Jan Company sells 5-year bonds with a face value of $100,000 for $97,000. Interest is paid semiannually. Using the effective-interest method at 12%, how much

Jan Company sells 5-year bonds with a face value of $100,000 for $97,000. Interest is paid semiannually. Using the effective-interest method at 12%, how much interest expense will be recorded with the first payment?

  1. $11,640
  2. $6,000
  3. $5,820
  4. $180

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