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On July 1, 2023, Pharoah Corp. had outstanding 6%, $1006000, 10-year bonds maturing on June 30, 2030. Interest is payable semi-annually on June 30
On July 1, 2023, Pharoah Corp. had outstanding 6%, $1006000, 10-year bonds maturing on June 30, 2030. Interest is payable semi-annually on June 30 and December 31. Assume all appropriate entries had been prepared and posted at June 30, 2024. The carrying value of the bond at June 30, 2024 was $970790. At this time, Pharoah purchased all the bonds at 95 and retired them. What is the gain or loss on this early extinguishment of debt?
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Intermediate accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
7th edition
978-0077614041, 9780077446475, 77614046, 007744647X, 77647092, 978-0077647094
