Improv Corporation decides to redeem its $100,000 face value bonds when the carrying value is $107,019.48. The bonds are redeemed on December 31, 2015, at 102.
REQUIRED:
1. Calculate Improv Corporation's gain or loss on the early redemption of the bonds.
2. Identify the accounting equation effects to be recorded at the time of bond redemption.

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The Answer of Improv Corporation decides to redeem its $100,000 face value bonds when the carrying value is $107,019.48. The bonds are redeemed on December 31, 2015, at 102.
REQUIRED:
1. Calculate Improv Corporation's gain or loss on the early redemption of the bonds.
2. Identify the accounting equation effects to be recorded at the time of bond redemption.

Improv Corporation Decides to Redeem Its $100,000 Face Value Bonds