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Nickel Inc. bought $200,000 of 3-year, 9% bonds as an investment on December 31, 2020 for $218,000. The investment receives interest annually and Nickel uses
Nickel Inc. bought $200,000 of 3-year, 9% bonds as an investment on December 31, 2020 for $218,000. The investment receives interest annually and Nickel uses straight-line amortization. On May 1, 2021, the issuer retired $40,000 of the bonds at 117. As a result of the retirement, Nickel will report a: (Do not round intermediate calculations and round your final answer to nearest whole dollar.) Multiple Choice $3,600 gain. $10,000 loss. $8,000 gain. $45,600 loss
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