On January 1, 2016, Alcon Corporation issued a 5-year, 10%, $10,000 bond payable. Beginning in 2017, interest is payable every January 1 over the life of the bond. The market rate of interest on the issue date is 10%. Calculate the interest expense for 2017 using the effective interest method.

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The Answer of On January 1, 2016, Alcon Corporation issued a 5-year, 10%, $10,000 bond payable. Beginning in 2017, interest is payable every January 1 over the life of the bond. The market rate of interest on the issue date is 10%. Calculate the interest expense for 2017 using the effective interest method.

On January 1, 2016, Alcon Corporation Issued a 5-Year, 10