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Cheyenne Company has bonds outstanding with a maturity value of $323000. On April 30, 2025, when these bonds had an unamortized discount of $10,000, they
Cheyenne Company has bonds outstanding with a maturity value of $323000. On April 30, 2025, when these bonds had an unamortized discount of $10,000, they were called in at 104. To pay for these bonds, Cheyenne had issued other bonds a month earlier bearing a lower interest rate. The newly issued bonds had a life of 10 years. The new bonds were issued at 102 (face value $323,000).
Ignoring interest, compute the gain or loss
___ (gain or loss) on redemption $_______
Ignoring interest, prepare the two entries to record this refunding transaction.
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