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c Ada Company has decided to extinguish its bond early since interest rates have decreased. The bond has a $200,000 face value and still has
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Ada Company has decided to extinguish its bond early since interest rates have decreased. The bond has a $200,000 face value and still has an unamortized premium of $2,290. Ada Company will pay $206,000 to bondholders to retire the bond early. How much will Ada Company's net income increase or decrease by from the extinguishment of debt? If increase, just put the amount. If decrease make sure to put a - sign in front of your amount. If there is no impact to the income statement, put 0 Step by Step Solution
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