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E10-18 LOTO Recording the Early Retirement of a Bond Issued at a Discount (with Discount Account) Several years ago, Nicole Company issued bonds with a
E10-18 LOTO Recording the Early Retirement of a Bond Issued at a Discount (with Discount Account) Several years ago, Nicole Company issued bonds with a face value of $1.000.000 for $945.000. As a result of declining interest rates, the company has decided to call the bond at a call premium of 5 percent over par. The bonds have a current book value of $984,000. Record the retirement of the bonds, using a dis count account
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