Dollar amount of cash paid to retire the bonds

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On June 30, one year before maturity, Chapters, Inc. retired $800,000 of its 4% bonds payable at 101. The book value of the bonds on June 30 is $805,000. Bond interest is presently paid up to the date of retirement.

1. What is the dollar amount of cash paid to retire the bonds?

2. Is there a gain or loss on the retirement of the bonds (from the seller's perspective)?

3. What is the dollar amount of the gain or loss?

Reference no: EM132709907

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