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A company can account for gains or losses from early extinguishment of debt in three ways: 1. Amortize over remaining life of old debt 2.

A company can account for gains or losses from early extinguishment of debt in three ways:

1. Amortize over remaining life of old debt

2. Amortize over the life of the new debt issue

3.Recognize in the period of extinguishment.

Discuss the supporting arguments for each method for gains and losses from the early extinguishment of debt.

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