What are the potential risks

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Reference no: EM131521596

Question: 1. If bonds with a carrying value of $280,000 are retired early at a cost of $330,000, is a gain or loss recorded by the issuer retiring the bonds? How does the issuer record the retirement?

2. How do interest expense and the carrying value of the note change over time for an installment note with fixed monthly loan payments?

3. Explain the difference between an operating lease and a capital lease.

4. What are the potential risks and rewards of carrying additional debt?

Reference no: EM131521596

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