On January 1, Year 1, Mainland, Incorporated, issued five year, 9% bonds with a face...
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On January 1, Year 1, Mainland, Incorporated, issued five year, 9% bonds with a face value of $500,000 for cash of $520,275. The bonds mature in five years and interest is payable annually on December 31. The market rate was 8% on the date the bonds were issued. The market rate rose to 11% on December 31, Year 1. Mainland uses the effective-interest amortization method. What amount of interest expense will be recognized on December 31, Year 1
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