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Question
Hooker Company sells $200,000 of ten-year, 8% bonds to yield 10% on January 1, 2011. The bonds pay interest annually on December 31. The bonds were sold at a discount of $24,578. The amount of bond interest expense for 2012 is
A. $16,000.
B. $17,696.
C. $18,458.
D. $19,280.
Answer
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