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The Nair Company issued a $9 million bond at a discount five years ago. The current...

The Nair Company issued a $9 million bond at a discount five years ago. The current carrying amount of the bond is $8.90 million. The company now has excess cash and decides to retire the bond. The bond is callable at 114 percent of its face value. Prepare the journal entry to record the retirement of the bond.

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