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Problem # 2 ( 6 points) Collins & Schnell (C& S) Company currently reports the following information on its $500,000 face value bond payable at

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Problem # 2 ( 6 points) Collins & Schnell (C& S) Company currently reports the following information on its $500,000 face value bond payable at 12-31-X8. $26,000 Unamortized Bond Premium $16,000 Unamortized Bond Issue Costs C& S decides to extinguish the bonds on 12-31-X8 at a reacquisition price of 99. Required: 1. Compute the carrying value of the bond and the gain or loss on retirement: a) Carrying value b) Gain or loss 2. Record the journal entry for the retirement on 12-31-X8

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