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McKannah Corporation issued $100,100 of 10%, 6-year bonds payable on January 1, 2017 for $92.980. The market interest rate when the bonds were issued was
McKannah Corporation issued $100,100 of 10%, 6-year bonds payable on January 1, 2017 for $92.980. The market interest rate when the bonds were issued was 12%. Interest is paid semi-annually on January 1 and July 1. The first interest payment is on July 1, 2017. Using the effective-interest amortization method, how much interest expense will McKannah record on July 1, 2017? O A. $5.233 OB. $6,006 OC. $6,778 OD. $5,579
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