Question
On January 1, 2013, Shay issues $420,000 of 9%, 12-year bonds at a price of 97.25. Six years later, on January 1, 2019, Shay retires
On January 1, 2013, Shay issues $420,000 of 9%, 12-year bonds at a price of 97.25. Six years later, on January 1, 2019, Shay retires 20% of these bonds by buying them on the open market at 104.50. All interest is accounted for and paid through December 31, 2018, the day before the purchase. The straight-line method is used to amortize any bond discount.
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