Record retirement using book value method for sunland capita

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Sunland Capital Ltd. issued 610 $1,000 bonds at 102. After issuance, similar bonds were sold at 96. Assume that Sunland Capital Ltd. follows ASPE and valued the debt component of the instruments first, applying the residual to the equity component. On a date when the bonds had a carrying value of $592,300 and fair value of $594,470, Sunland paid $640,000 in cash to the bondholders to retire the bonds early.

Problem 1: Record the retirement using the book value method.

Reference no: EM132699785

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