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At December 31, 2014 the following balances existed on the books of Foxworth Corporation: Bonds Payable $4,000,000 Discount on Bonds Payable 320,000 Interest Payable 100,000
At December 31, 2014 the following balances existed on the books of Foxworth Corporation:
Bonds Payable | $4,000,000 | ||
Discount on Bonds Payable | 320,000 | ||
Interest Payable | 100,000 | ||
Unamortized Bond Issue Costs | 240,000 |
If the bonds are retired on January 1, 2015, at 102, what will Foxworth report as a loss on redemption?
| $540,000 |
| $400,000 |
| $740,000 |
| $640,000 |
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