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On the day Trott Ltd redeemed its $1,000,000 face value bonds at 98, their carrying value...

On the day Trott Ltd redeemed its $1,000,000 face value bonds at 98, their carrying value was $1,200,000.

Required:

Prepare a residual analysis (include figures) for the bond redemption. If you recognise a gain or loss, state where in the Statement of Comprehensive Income the gain or loss should appear.

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