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On January1, 2017, Chin Corporation issued$2,600,000, 16%, 5year bonds. The bond interest is payable on January 1 and July 1. The bonds sold for$2,819,600. The
On January1, 2017, Chin Corporation issued$2,600,000, 16%, 5year bonds. The bond interest is payable on January 1 and July 1. The bonds sold for$2,819,600. The market rate of interest for these bonds was14%. Under the effectiveinterest method, what is the interest expense for the six months ending July1, 2017?
A.
$182,000
B.
$197,372
C.
$225,568
D.
$208,000
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