Question: On January 1 , 2 0 2 5 , Blue Company issued $ 1 , 1 0 0 , 0 0 0 face value, 7

On January 1,2025, Blue Company issued $1,100,000 face value, 7%,10-year bonds at $1,180,961. This price resulted in a 6%
effective-interest rate on the bonds. Blue uses the effective-interest method to amortize bond premium or discount. The bonds pay
annual interest on each January 1.
What is the interest expense to be recorded in 2026?

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