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Reynolds corporation issues $75,000 face value bonds at a discount of $2,500. The bonds contain a call price of 103. Reynolds decides to redeem the
Reynolds corporation issues $75,000 face value bonds at a discount of $2,500. The bonds contain a call price of 103. Reynolds decides to redeem the bonds early when the unamortized discount is $1,750. Required calculate reynolds corporations gain or loss on the early redemption fo the bonds. Describe how the gain or loss would be reported on the income statement and in the notes to the financial statements.
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