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18 July, 01:00

The Titan retires a $24.6 million bond issue when the carrying value of the bonds is $21.4 million, but the market value of the bonds is $29.0 million. The entry to record the retirement will include:

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  1. 18 July, 01:09
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    A debit of $7.6 million to a loss account

    Explanation:

    Step 1. Given information.

    Carrying value is 21.4 million Market value when retired is 29 million.

    Step 2. Formulas needed to solve the exercise.

    Gain (Loss) = Carrying value - Market value when retired

    Step 3. Calculation.

    = 21.4 million - 29 million

    = 7.6 million

    Step 4. Solution.

    A debit of $7.6 million to a loss account
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Home » Business » The Titan retires a $24.6 million bond issue when the carrying value of the bonds is $21.4 million, but the market value of the bonds is $29.0 million. The entry to record the retirement will include:
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