Falco Inc. issued a $20,000,000 bond with a 6% coupon paid semiannually 3 years ago....
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Accounting
Falco Inc. issued a $20,000,000 bond with a 6% coupon paid semiannually 3 years ago. The bond was orginally for 20 years. In order to clean up their balance sheet to prepare a public offering of stock, Falco Inc. decides to buy back their outstanding bonds of this isue in the market place. The current carrying value of the bonds is 18,750,000 and they repuchased the bonds for 19,100,000. Prepare the journal entry for the early extinguishment of the debt.
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