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A company issues $100,000 face value, zero coupon, 4 year U

Accounting

A company issues $100,000 face value, zero coupon, 4 year U.S. corporate bonds on January 1, 20x0, when the market rate for similar risk bonds is 126. The bond uses annual compounding. The firm uses effective interest amortization. What is the amount recorded for the second interest expense journal entry?

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