The entire issue on the open market


Michael Company issued 8% bonds with a par value of $1,000,000, receiving a $20,000 premium. On the interest date 5 years later, after the bond interest was paid and after 40% of the premium had been amortized, the corporation purchased the entire issue on the open market at 99 and retired it. The gain or loss on this retirement is?

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Accounting Basics: The entire issue on the open market
Reference No:- TGS0687111

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