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Vaughn Manufacturing received proceeds of $206800 on 10-year, 8% bonds issued on January 1, 2018. The bonds had a face value of $220000, pay interest
Vaughn Manufacturing received proceeds of $206800 on 10-year, 8% bonds issued on January 1, 2018. The bonds had a face value of $220000, pay interest annually on January 1, and have a call price of 101. Vaughn uses the straight-line method of amortization. Vaughn Manufacturing decided to redeem the bonds on January 1, 2020. What amount of gain or loss would Vaughn report on its 2020 income statement? $10560 gain O $12760 gain O $12760 loss O $10560 loss
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