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Q. Cramer company sold 5 year 8% bonds on october 1, 2011. the face amount of the bons was $100,000 while the issue price was $102,000. interest is payable on april 1 of each year. The fiscal year of cramer company ends on december 31. How much interest expense will cramer company report in its december 31, 2011 income statement?

 

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