Thomson Reuters is the world's leading source of electronic information and services to businesses and professionals in various fields such as the media, financial services, tax and accounting, and healthcare and science. The company's annual report for 2009 indicates that the carrying amount of long-term debt is $7,603 million, but its fair value is $8,153 million. The fair value of debt is estimated based on either quoted market prices for similar issues or current rates offered to the company for debt of the same maturity. Required: What is meant by "fair value"? Explain why there is a difference between the carrying amount and the fair value of the long-term debt for Thomson Reuters. Assure that Thomson Reuters decided to retire all of its long-term debt for cash (a very unlikely event). Prepare the journal entry to record the transaction.\section*{Required:}

What is meant by "fair value"? Explain why there is a difference between the carrying amount and the fair value of the long-term debt for Thomson Reuters. Assume that Thomson Reuters decided to retire all of its long-term debt for cash (a very unlikely event). Prepare the journal entry to record the transaction.