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On January 1, 2017, Citywide Sales issued $27,000 in bonds for $34,800. These are eightminusyear bonds with a stated rate of 15% and pay semiannual
On January 1, 2017, Citywide Sales issued $27,000 in bonds for $34,800. These are eightminusyear bonds with a stated rate of 15% and pay semiannual interest. Citywide Sales uses the straightline method to amortize the bond premium. On June 30, 2017, when Citywide makes the first payment to bondholders, what is the amount that will be reported as Interest Expense? (Round your intermediate answers to the nearest dollar.)
A. $2,025
B. $1,537
C. $6,263
D. $1,650
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