Question: A bond with a $ 5 0 0 , 0 0 0 maturity value is immediately retired for $ 5 1 5 , 0 0

A bond with a $500,000 maturity value is immediately retired for $515,000 plus accrued interest. The premium on bonds payable (bond premium) at the retirement date is $17,500. Which of the following statements is correct?

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