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On July 1, 2017, Advocate Company exercises an $5,600 call option (plus par value) on its outstanding bonds that have a carrying value of $288,000
On July 1, 2017, Advocate Company exercises an $5,600 call option (plus par value) on its outstanding bonds that have a carrying value of $288,000 and par value of $280,000. The company exercises the call option after the semiannual interest is paid on June 30, 2017. Record the entry to retire the bonds.
Please show how you get the gain calculation.
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