Rick Inc. issued a 10-year, $100,000, 9% note on Jan. 1, Year 1. The note was issued
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Rick Inc. issued a 10-year, $100,000, 9% note on Jan. 1, Year 1. The note was issued to yield 10% for proceeds of $93,770. Interest is payable semiannually. The note is callable after 2 years at a price of $96,000. Due to a decline in market rates to 8%, Rick Inc. retired the note on December 31, Year 3. On that date carrying value of the note was $94,582.
What amount should be reported as a gain (loss) from retirement?
Related Book For
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
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