The Merchant Company issued 10-year bonds on January 1, 2011. The 8% bonds have a face value of…


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The Merchant Company issued 10-year bonds on January 1, 2011. The 8% bonds have a face value of $107,000 and pay interest every January 1 and July 1. The bonds were sold for $129,054 based on the market interest rate of 6%. Merchant uses the effective-interest method to amortize bond discounts and premiums. On July 1, 2011, Merchant should record interest expense (round to the nearest dollar) of

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