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Linda Day George Company had bonds outstanding with a maturity value of $457,700. On April 30, 2014, when these bonds had an unamortized discount of
Linda Day George Company had bonds outstanding with a maturity value of $457,700. On April 30, 2014, when these bonds had an unamortized discount of $14,200, they were called in at 106. To pay for these bonds, George had issued other bonds a month earlier bearing a lower interest rate. The newly issued bonds had a life of 10 years. The new bonds were issued at 102 (face value $457,700). Issue costs related to the new bonds were $3,300. Ignoring interest, compute the gain or loss. (Round answer to 0 decimal places, e.g. 38,548.) Loss on redemption $ Ignoring interest, record this refunding transaction. (Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
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