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Business, 22.07.2021 20:30 MiaZo5869

Ivo Company has a $10 million face value bond issue outstanding. These bonds include a call option that permits Ivo to redeem the bonds at any time for 101% of par. These bonds were issued at a premium and have a carrying value of $10,200,000. If Ivo calls the bonds, its income statement will reflect:_---. a. neither a gain nor a loss on redemption.
b. a gain on redemption.
c. a loss on redemption.

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