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Problem 1: On July 1, 2002, Dora Corporation purchased Remy Company's 10-year, 12% bonds with face value of $300,000 for $324,000, which included $12,000 of accrued interest. The bonds, which mature on March 1, 2009, pay interest semi-annually on March 1 and September 1. Dora appropriately uses the straight line method of amortization. How much income should Dora report for the calendar year 2002 as a result of this long-term investment?
Option 1: 16,200Option 1: 17,100Option 1: 18,000Option 1: 30,000
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