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AI decided to redeem its bonds early, two years before its official maturity date. The bonds had a book value (face value less unamortized discount)
AI decided to redeem its bonds early, two years before its official maturity date. The bonds had a book value (face value less unamortized discount) of $950,000 and a face value of $1,000,000. Brentley paid the bondholders $980,00 to redeem the bonds.
- Did they recognize a gain or a loss?
- Of how much?
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