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Question
Franklin Corporation issues a $50,000, 10%, 5-year bond on January 1 for $52,100. Interest is paid semiannually on January 1 and July 1. If Franklin uses the straight-line method of amortization of bond premium, the amount of bond interest expense to be recognized on July 1 is
a. $10,290
b. $2,710
c. $2,500
d. $2,290
Answer
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