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On January 1, 2020 a corporation issued $600,000 face value of bonds due in 10 years with a contractual interest rate of 7%. Interest is

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On January 1, 2020 a corporation issued $600,000 face value

of bonds due in 10 years with a contractual interest rate of 7%.

Interest is payable each July 1 and January 1.

The bonds are priced to yield 8%.

(10) How much Interest Expense must be recorded on July 1, 2020

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