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Franklin Corporation Issues $50,000, 10%, 5-Year Bonds on January 1

Question 59

Multiple Choice

Franklin Corporation issues $50,000, 10%, 5-year bonds 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

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