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Lakers Incorporated issued a P5,000,000, 10%, 10-year bonds on July 1, 2020 for 113.6 when the effective interest rate was 8%. Interest is payable on
Lakers Incorporated issued a P5,000,000, 10%, 10-year bonds on July 1, 2020 for 113.6 when the effective interest rate was 8%. Interest is payable on December 31. Lakers uses the effective interest method to amortize all premiums and discounts.
How much interest expense should Lakers report in its income statement for the year ended December 31, 2020?
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