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Salem Company has outstanding $100 million of 7% bonds, due in 7 years, and callable at 104. The bonds were issued at par and are

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Salem Company has outstanding $100 million of 7% bonds, due in 7 years, and callable at 104. The bonds were issued at par and are selling today at a market price of 94. if Salem Company calls $10 million of these bonds it will report: Multiple Choice A $700,000 gain A $400,000 loss A $600,000 gain Neither gains nor losses are recognized on early retirements of debt

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