Home from intermediate accounting Seventh Edition. McGraw Hill Irwin P 14-14 Page 849 Early extinguishment of debt. Three years ago American Insulation Corporation issued 10 percent, 800,000, 10 year bonds for770,000. Debt tissue cost were 3,000. American insulation exercised its called privilege and retired the bonds for 790,000. The corporation uses the straight line method both to determine and amortize debt issue cost. Prepare the entry to record the call of the bonds