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On January 1, 2017, ABC issues a 5-year, $10,000 par value, zero coupon bond. The market initially prices these bonds at 10% effective rate. On

On January 1, 2017, ABC issues a 5-year, $10,000 par value, zero coupon bond. The market initially prices these bonds at 10% effective rate. On January 1, 2018, ABC buys back the bond at $7,000. What is the gain/loss due to early extinguishment of debt?

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