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On January 1, a company issued $5,505,000 of 12%, 6-year bonds for $4,879,993. The bonds pay interest annually on January 1. The effective interest rate
On January 1, a company issued $5,505,000 of 12%, 6-year bonds for $4,879,993. The bonds pay interest annually on January 1. The effective interest rate on the bonds is 15%. Use the effective-interest method to determine the amount of interest expense for the first year.
$660,600
$731,999
$585,599
$832,580
$825,750
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