The balance sheet for Claremont Company reports the following information on July 1, 2012.
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CLAREMONT COMPANY
Balance Sheet (partial)
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Long-term liabilities
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Bonds payable
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$2,000,000
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Less: Discount on bonds payable
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45,000
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$1,955,000
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Claremont decides to redeem these bonds at 102 after paying annual interest. Prepare the journal entry to record the redemption on July 1, 2012.