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On January 1, 2026, $1,000,000, 10-year, 10% bonds, were issued for $1,030,000. Interest is paid annually on January 1. If the issuing corporation uses the
On January 1, 2026, $1,000,000, 10-year, 10% bonds, were issued for $1,030,000. Interest is paid annually on January 1. If the issuing corporation uses the straight-line method (i.e., spread out evenly over 10 years) to amortize premiums on bonds payable, the annual interest expense reported on the income statement is:
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$97,000
$130,000
$100,000
$103,000
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