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On January 1,2020, Crane Corp. issued 4400 of its 10%,$1,000 bonds for $4576000. These bonds...

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Accounting

On January 1,2020, Crane Corp. issued 4400 of its 10%,$1,000 bonds for $4576000. These bonds were to mature on January 1,
2030 but were callable at 101 any time after December 31,2023. Interest was payable semiannually on July 1 and January 1. On July
1,2025, Crane called all of the bonds and retired them. Bond premium was amortized on a straight-line basis. Before income taxes,
Crane's gain or loss in 2025 on this early extinguishment of debt was
$52800 gain.
$35200 gain.
$132000 gain.
$44000 loss.
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