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A company wants to extinguish a $700,000 face value bond with a carrying value of $742,000. The call price on this bond is $800,000. The

A company wants to extinguish a $700,000 face value bond with a carrying value of $742,000. The call price on this bond is $800,000. The stated rate was 10% and market rate was 8%. The journal entry to record the extinguishment on the bond will include A. Dr. Bond Payable 700,000 B. Dr. Premium on Bond Payable 58,000 C. Dr. Loss on extinguishment 42,000 D. Cr. Bonds Payable 700,000

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