A $500,000 bond issue on which there is an unamortized discount of $40,000 is redeemed for $475,000. Journalize the redemption of the bonds.
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Face Value of Bond $500000
Less: Unamortized Discount 40000
Carrying Value $460000
The face value of Bond is $500000 and Unamortized discount at ...
Computations and journal entry provided for you.