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E17-8 Bond retirement (L.O. 5, 6) Hackberry Corporation issued $400,000 of 12% bonds at 97 on January 1 19X2. Interest is paid semiannually on June
E17-8 Bond retirement (L.O. 5, 6) Hackberry Corporation issued $400,000 of 12% bonds at 97 on January 1 19X2. Interest is paid semiannually on June 30 and December 31. The bonds have a 10-year life from the date of issuance; Hackberry uses the straight-line method of amortization. On July 1, 19X8, the bonds were called at 105 and retired. a Compute the amount of unamortized discount as of the call date b Present the entry necessary on July 1, 19X8. c Discuss possible reasons why Hackberry exercised the call provision
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