Question: On July 1 2015 Advocate Company exercises an 8 000 call
On July 1, 2015, Advocate Company exercises an $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, 2015. Record the entry to retire the bonds.
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