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Cramer Company sold four-year, 8% bonds on October 1, 2016. The face amount of the...

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Accounting

Cramer Company sold four-year, 8% bonds on October 1, 2016. The face amount of the bonds was $140,000, while the issue price was $142,000. 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, 2016, income statement (assume straight-line amortization)?

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