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Six years ago, a company issued $500,000 of 6%, eight-year bonds at a price of 95. The current carrying value is $493,750. The company retired
Six years ago, a company issued $500,000 of 6%, eight-year bonds at a price of 95. The current carrying value is $493,750. The company retired 50% of the bonds by buying them on the open market at a price of 102 and half. What is the amount of gain or loss on retirement of these bonds?
$9,375 gain
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$9,350 loss
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$9,375 loss
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$8,350 gain |
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