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A $200,000, 8% Bond Issue Was Sold at Face Value

Question 24

Multiple Choice

A $200,000, 8% bond issue was sold at face value and later redeemed at 104% of face value. The corporation would have a

A) loss of $8,000.
B) gain of $8,000.
C) loss of $20,000.
D) gain of $20,000.

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