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Bonds Payable has a balance of $3,500,000 and Discount on Bonds Payable has a balance of $125,000.

Bonds Payable has a balance of $3,500,000 and Discount on Bonds Payable has a balance of $125,000. If the issuing corporation redeems the bonds before the maturity date at 97, is there a gain or a loss on the bond redeemption? How much of a gain or a loss?
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Accounting- 8100618.xls

Bonds Payable
Discount on Bonds Payable
Redeemed 3,500,000
125,000
97 Carrying amount - Bonds 3,375,000 Redemption value 3,395,000 A gain is recorded if the price paid for the redemption is below...

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