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On January 1, 2021, ABC company issues a 3 year $200,000 bond that pays 5% interest annually. At the time the bond is issued, the

On January 1, 2021, ABC company issues a 3 year $200,000 bond that pays 5% interest annually. At the time the bond is issued, the market interest rate for similar bonds is 10%. Using the effective rate method of amortization, what is the impact on net income in 2022 as a result of the events described?

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