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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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