Compute the gain or loss for blue company

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Question

Blue Company had bonds outstanding with a maturity value of $309,000. On April 30, 2017, when these bonds had an unamortized discount of $11,000, they were called in at 104. To pay for these bonds, Blue had issued other bonds a month earlier bearing a lower interest rate. The newly issued bonds had a life of 10 years. The new bonds were issued at 103 (face value $309,000).

Ignoring interest, compute the gain or loss.

Loss on redemption$

Ignoring interest, record this refunding transaction. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Reference no: EM132323947

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