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# The following is a question followed by the text answer. I understand the answer with the exception of "x. Please explain what ".60" represents....

The following is a question followed by the text answer. I understand the answer with the exception of "x.60". Please explain what ".60" represents.

Question: Cortez Company issues \$5,000,000 face value of bonds at 96 on January 1, 2009. The bonds are dated January 1, 2009, pay interest semiannually at 8% on June 30 and December 31, and mature in 10 years. Straight-line amortization is used for discounts and premiums. On September 1, 2012, \$3,000,000 of the bonds are called at 102 plus accrued interest. What gain or loss would be recognized on the called bonds on September 1, 2012?
Answer: {\$4,800,000 + [\$200,000 × (3 2/3 ÷ 10)]} × .60 = \$2,924,000
\$3,060,000 – \$2,924,000 = \$136,000.

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