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Rite Aid Long Term Liability CASE PLEASE HELP!!!! Note 10 reports that Rite Aid engaged in some open-market debt transactions during year ended February 28,2004

Rite Aid Long Term Liability CASE PLEASE HELP!!!!

Note 10 reports that Rite Aid engaged in some open-market debt transactions during year ended February 28,2004 (see the part of note 10 marked "Debt Repurchased").

i) Prepare the journal entry required to record the repurchase of these notes.

ii) Why did Rite Aid not have to pay the face value to repurchase these notes on the open market?

iii) Explain why Rite Aid recorded a gain on all of the repurchased notes except on the 12.5% note on which it recorded a loss?

image text in transcribedIf percentages are not clear enough:

6.0%

7.125%

6.875%

7.7%

6.875%

12.5%

image text in transcribedimage text in transcribedimage text in transcribed

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