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On January 2, 2013, a calendar-year corporation sold 8% bonds with a face value of $900,000. These bonds mature in five years, and interest is

On January 2, 2013, a calendar-year corporation sold 8% bonds with a face value of

$900,000. These bonds mature in five years, and interest is paid semi-annually on June 30

and December 31. The bonds were sold for $912,400 to yield 10%. Using the effective

interest rate method of calculating interest, how much should be charged to interest

expense in 2013?

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