Question: On July 1 2013 Advocate Company exercises a 8 000
On July 1, 2013, Advocate Company exercises a $ 8,000 call option (plus par value) on its outstanding bonds that have a carrying value of $ 416,000 and par value of $ 400,000. The company exercises the call option after the semiannual interest is paid on June 30, 2013. Record the entry to retire the bonds.
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