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On January 1, 2017, Swifty Corporation sold 12% bonds with a face value of $2600000. The...

On January 1, 2017, Swifty Corporation sold 12% bonds with a face value of $2600000. The bonds mature in five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for $2800800 to yield 10%.

Using the effective-interest method of amortization, interest expense for 2017 is

a

 $280030.

b

 $312000.

c $260000.
d $279282.

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Expert Solution

ekkarill92 answered 2 years ago
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