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On January 1, a corporation issued $4,500,000, 6%, 8-year bonds for $5,105,947. Interest is payable annually on January 1. The effective interest rate on the

On January 1, a corporation issued $4,500,000, 6%, 8-year bonds for $5,105,947. Interest is payable annually on January 1. The effective interest rate on the bonds is 4%. Use the effective-interest method to determine the amount of interest expense for the first year.

$180,000

$204,238

$306,357

$175,956

$270,000

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