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Point 1: January 1, 2020, Farhaan Corp. issued bonds with a par value of $ 1,000,000 at 98 (which is net of issue costs), due in 15 years. Six years after the issue date, the entire issue is called at 102 and cancelled.
Instructions
Question 1: Prepare the journal entry to reflect the reacquisition of the bond assuming the straight-line amortization method.
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