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Pharoah Company received proceeds of $482000 on 10-year, 8% bonds issued on January 1, 2016. The bonds had a face value of $460000, pay interest
Pharoah Company received proceeds of $482000 on 10-year, 8% bonds issued on January 1, 2016. The bonds had a face value of $460000, pay interest annually on December 31st, and have a call price of 102. Pharoah uses the straight-line method of amortization. Pharoah Company decided to redeem the bonds on January 1, 2018. What amount of gain or loss would Pharoah report on their 2018 income statement?
17600 loss
$8400 loss
$8400 gain
$17600 gain
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