Question: The Mira Vista Company issued 1 200 000 in bonds at a
The Mira Vista Company issued $1,200,000 in bonds at a discount five years ago. The current book value of the bonds is $1,125,000. The company now has excess cash on hand and plans to retire the bonds. The company must pay a 7 percent (of par) call premium to retire the bonds. Record the retirement of the bonds.
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