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Dell Co. issues bonds dated January 1, 2009, with a par value of $650,000. The bonds' annual contract rate is 15%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 14%, and the bonds are sold for $665,491. Use the effective interest method to amortize the premium for these bonds.

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