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Problem 1: Franklin Corporation issues $50,000, 10%, 5-year bonds on January 1, for $52,100. Interest is paid semiannually on January 1 and July 1. If Franklin uses the straight-line method of amortization of bond premium, Determine the amount of bond interest expense to be recognized on July 1 is
Option 1: $2,500
Option 2: $2,290
Option 3: $10,290
Option 4: $2,710
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