Question: Marvin Corporation issued $ 5 2 5 , 0 0 0 of 7 % , 1 0 - year bonds for 9 7 on January

Marvin Corporation issued $525,000 of 7%,10-year bonds for 97 on January 1, Year 1. Interest is payable annually on December 31. The company uses the straight-line method to amortize bond discounts and premiums.
Required:
b) Determine the amount of interest expense reported on the Year 1 income statement.

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