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On January 1, 2016. Aggie issued $200,000 of 9%, five-year bonds payable for $225, 570. At issue the market rate of interest was 6%. Aggie

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On January 1, 2016. Aggie issued $200,000 of 9%, five-year bonds payable for $225, 570. At issue the market rate of interest was 6%. Aggie has extra cash and wishes to retire the bonds payable on January 1, 2017, immediately after making the second semiannual interest payment. To retire the bonds, Aggie pays the market price of 96. Aggie uses the effective interest method to amortize bond discount or premium. How much is Aggies gain or loss on the early retirement? A. $20, 196 loss B. $37, 969 gain C $33, 637 gain D. $29, 037 gain E. $12, 196 loss

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