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I need help solving this problem please 8. On January 1, 2012, Hernandez Corporation issued $18,000,000 of 10% ten-year bonds at 103. The bonds are
I need help solving this problem please
8. On January 1, 2012, Hernandez Corporation issued $18,000,000 of 10% ten-year bonds at 103. The bonds are callable at the option of Hernandez at 105. Hernandez has recorded amortization of the bond premium on the straight-line method (which was not materially different from the effective-interest method). hased On December 31, 2018, when the fair value of the bonds was 96, Hernandez repurc $4,ooo,ooo of the bonds in the open market at 96. Hernandez has recorded interest and amortization for 2018. What amount of gain/loss (ignoring income taxes) would Hernandez report on this acquisition of bonds? (Be sure to indicate amount and indicate gain/loss.)Step by Step Solution
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