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Crane Corporation retires its $760000 face value bonds at 103 on January 1, following the payment of interest. The carrying value of the bonds
Crane Corporation retires its $760000 face value bonds at 103 on January 1, following the payment of interest. The carrying value of the bonds at the redemption date is $731500. Crane's entry to record the redemption will include a debit of $22800 to Premium on Bonds Payable. credit of $28500 to Discount on Bonds Payable. credit of $28500 to Loss on Bond Redemption. debit of $51300 to Gain on Bond Redemption.
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