Question 4 A $550000 bond was retired at 102 when the carrying value of the bond...

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Answer 1

Answer #1

Book value = $582,000

Cash paid = $550,000 X 1.02 = $561,000

When cash paid is less than the book value, there is a gain.

Gain = $582,000 - $561,000 = $21,000

2nd option

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Answer 2

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