Don Manufacturing retired its $6.000,000 par value, 7%, 10-year bonds early on February 28, 2018, for $6,720,408,

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Don Manufacturing retired its $6.000,000 par value, 7%, 10-year bonds early on February 28, 2018, for $6,720,408, including accrued interest of $70,000. The carrying value of the bonds at retirement was $6,330,956. What is the gain or loss on early retirement? Prepare the journal entry to record the derecognition of the obligation.

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Intermediate Accounting

ISBN: 978-0134730370

2nd edition

Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

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