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On January 1 2016 Faxico Inc issued $ 4500000 par value 8% five- year bonds Interest is payable semiannually on January

On January 1, 2016, Faxico, Inc. issued $ 4,500,000 par value 8%, five- year bonds. Interest is payable semiannually on January 1 and July 1 with the first interest payment on July 1, 2016. The market rate of interest on the date of the bond issue was 10%. Faxico retired the debt early at the end of the third year for $ 4,000,000. Required a. Determine the carrying value of the bond at retirement. b. Prepare the journal entry to record the early retirement of the debt at the end of the third year. .

Apr 22 2020 View more View Less

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