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Manfred Company Retired $500,000 of 5% Bonds Payable at 96

Question 64

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Manfred Company retired $500,000 of 5% bonds payable at 96 on June 30, 2017, two years before the bonds matured. The bond book value on June 30, 2017 is $475,000, and bond interest is paid up to the date of retirement.
What is the gain/loss on the retirement of these bonds?

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Amount to retire bonds = $500,...

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