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Calculate the gain or loss the company would recognize

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Question - The Sonia Corporation is considering retiring one of its bond issues. The bonds are $10,000,000, 6%, 10-year bonds, issued five years ago at par.

Calculate the gain or loss the company would recognize if it retired the bonds for $9,700,000. Assume that all appropriate interest payments have been made on the bonds before they are retired.

a. $900,000 gain

b. $300,000 loss

c. $0

d. $300,000 gain

Reference no: EM132105379

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