Brahtz Fabricators, a manufacturing company, paid $6,500,000 to retire $8,000,000 in 7% bonds due in 5 years. The book value of the bonds was $6,400,000 at the date of retirement.
A. How much is the net gain or loss on the redemption of these bonds?
B. Prepare the journal entry to record the transaction.

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The Answer of Brahtz Fabricators, a manufacturing company, paid $6,500,000 to retire $8,000,000 in 7% bonds due in 5 years. The book value of the bonds was $6,400,000 at the date of retirement.
A. How much is the net gain or loss on the redemption of these bonds?
B. Prepare the journal entry to record the transaction.

Brahtz Fabricators, a Manufacturing Company, Paid $6,500,000 to Retire $8,000,000