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Calculate the reacquisition price of the bonds on January

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Problem - Extinguishment of Bonds Prior to Maturity - On January 1, 2008, Davis Corporation issued $3,000,000 of 8% bonds at 103. Interest is paid annually on December 31 of each year. The bonds mature on December 31, 2027, and the company uses the straight-line method of amortization. On January 2, 2019, Davis reacquired the bonds and recognized a loss of $96,000.

Required - Calculate the reacquisition price of the bonds on January 2, 2019, and prepare the journal entry to record the reacquisition of Davis's bonds.

Reference no: EM132888845

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