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On March 1, 2014, Angela Company issues $100,000, 4.8%, 4-year bonds to yield 8%, however the bonds are dated January 1, 2014. Interest is paid
On March 1, 2014, Angela Company issues $100,000, 4.8%, 4-year bonds to yield 8%, however the bonds are dated January 1, 2014. Interest is paid on Jun 30 and December 31. The proceeds from the bonds are $89,228 plus accrued interest. The company's fiscal year ends on December 31 and they use the straight-line method to amortize discounts and premiums.
a) What amount of interest expense will be reported on the 2014 Income Statement? (Please show the process)
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