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Several years ago, Nicole Company issued bonds with a face value of $1,170,000 for $1,030,000. As a result of declining interest rates, the company has
Several years ago, Nicole Company issued bonds with a face value of $1,170,000 for $1,030,000. As a result of declining interest rates, the company has decided to call the bond at a call premium of 6 percent over par. The bonds have a current book value of $1,139,000. Record the retirement of the bonds, using a discount account.
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