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On January 1,2024 , an investor paid $290,000 for bonds with a face amount of $350,000. The contract rate of interest is 8% while the

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On January 1,2024 , an investor paid $290,000 for bonds with a face amount of $350,000. The contract rate of interest is 8% while the current market rate of interest is 10%. Using the effective interest method, how much interest income is recognized by the investor in 2025 (assume annual interest payments and amortization)? Multiple Choice $29,100 $27,294 $29,250 $29,000

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