Lassen Corporation issued ten-year term bonds on January 1, 2010, with a face value of $800,000. The face interest rate is 6 percent and interest is payable semiannually on June 30 and December 31. The bonds were issued for $690,960 to yield an effective annual rate of 8 percent. The effective interest method of amortization is to be used. The entry to record the bond interest expense on the first interest payment date is: (Round answer to the nearest dollar.) 
Correct Answer:
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A)must be expensed when incurred.
B)must
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