Question: Donovan Company issues 5 year bonds on 1/1/2010 with a face value of $1,500,000. Due to the change in the interest rate environment, Donovan redeems

Donovan Company issues 5 year bonds on 1/1/2010 with a face

Donovan Company issues 5 year bonds on 1/1/2010 with a face value of $1,500,000. Due to the change in the interest rate environment, Donovan redeems the bonds at 85 on 1/1/2011 when the balance in the discount account is $268,707. How much loss should Donovan recognize from the bond redemption? $268,707 $225,000 $43,707 $493,707

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