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A company has bonds outstanding with a parvalue of $100,000. The unamortized premium on these bonds is $3,500. The company calls these bonds at a price of $102,000, :the gain or loss on retirement is

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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A company has bonds outstanding with a parvalue of $100,000. The unamortized premium on these bonds is $3,500. The company calls these bonds at a price of $102,000,
:the gain or loss on retirement is
loss $3,500 AO
-gain $1,500 B O
-gain $3,500.CO
loss $1,500.DO

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