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A company issued 10-year, 5.75% bonds with a face value of $100,000. The company received $97,857...

A company issued 10-year, 5.75% bonds with a face value of $100,000. The company received $97,857 for the bonds. Using the straight-line method of amortization, the amount of interest expense for the first annual interest period is:

Multiple Choice

  • $5,535.70

  • $5,750.00

  • $2,143.00

  • $5,964.30

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