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McAndrews Corporation issued $550,000 of 6.0% 10-year bonds. The bonds are dated and sold on January 1, 2015. Interest payment dates are January 1 and
McAndrews Corporation issued $550,000 of 6.0% 10-year bonds. The bonds are dated and sold on January 1, 2015. Interest payment dates are January 1 and July 1. The bonds are issued for $510,916 to yield the market interest rate of 7%. McAndrews Corporation uses the effective-interest method. What is the amount of interest expense that McAndrews Corporation will record on July 1, 2015, the first semiannual interest payment date? (All amounts rounded to the nearest dollar.) O A. $16,500 OB. $20,955 OC. $17,882 OD. $1,382
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