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F E D E R A L R E S E R V E BANK OF NEW YORK F s a Agent o t e United S a e icl f h tts r Circular No. 5 3 8 2 ~ l L September 4, 1963 J ADVANCE REFUNDING To All Banking Institutions, and Others Concerned, in the Second Federal Reserve D istrict: Enclosed is a copy of a Treasury statement made public today, announcing an advance refunding of securities maturing in 1964, 1966, and 1967. The subscription books will be open from September 9 through September 13. The official offering circulars and subscription forms will be mailed to arrive by Monday, September 9. Additional copies of the enclosure will be furnished upon request. A lfred H ayes, President. TREASURY DEPARTMENT WASHINGTON, D. C. IM M E D IA TE R E L E A SE Wednesday, September 4, 1963 ADVANCE REFUNDING OFFER The Treasury today announced that it will offer holders of $32.1 billion of outstanding Treasury securities an opportunity to extend their holdings at attractive yields. Of this total, $23.0 billion are held by the public. The current offering combines a junior advance refunding with a “ prerefunding,” that is, an advance refunding of issues maturing within the next 12 months. Holders of securities eligible for exchange have the option of exchanging them, as of September 15, 1963, (with payment for the new bonds to be completed by and delivery to be made on September 18) for three new issues as follows: Securities eligible for exchange and their maturity dates Securities offered in exchange and their maturity dates P r e r e f u n d in g 31/4% Ctf s., B-1964 5/15/64 4 % % Notes, A-1964 3 % % Notes, D-1964 5/15/64 5/15/64 “ J u n io r ” A 3 % % Bonds, 1968 (New Issue) 4% Bonds, 1973 (New Issue) 4V8% Bonds, 1989-94 (Addl. Issue) dvance R 11/15/68 8/15/73 5/15/89-94 e f u n d in g 334% Bonds, 1966 5/15/66 4% Notes, A-1966 8/15/66 4% Bonds, 1973 (New Issue) 3 % % Notes, B-1967 2/15/67 3 % % Notes, A-1967 8/15/67 4 % % Bonds, 1989-94 (Addl. Issue) 8/15/73 5/15/89-94 The exchanges will be made on the basis of par for par with accrued interest adjustments as of September 15, 1963, and with cash payments to subscribers which will approximately equalize current market values among eligible issues having different coupons and maturities, and provide an attractive exchange value for each of the issues offered. The amount of the offering will be limited to the amount of securities accepted in exchange. Cash subscriptions are not invited. The exchanges will not be treated as a sale and purchase for tax purposes; therefore, there will be no recognition of gain or loss for Federal income tax purposes solely on account of the exchange of old for new securities. Details axe presented in the following paragraph No. 9. The subscription books will be open beginning Monday, September 9, and will remain open through Friday, September 13, 1963, for all classes of subscribers. Further details of the offering, including amounts of cash payments due to subscribers, and the amounts of accrued interest adjustments, are described below. Terms and Conditions of the Advance Refunding Offer 1 To al h l e s o t e fol o i g outstanding Treasury s c r t e : . l odr f h lwn euiis Description of securities Issue date 3^4% c r i i a e B-1964 etfct 4^/4% note A-1964 note D-1964 334% bond 1966 4% note A-1966 3 % % n t B-1967 oe 33/4% note A-1967 3% % May July June Nov. F eb. March Sp. et Remaining term to maturity Yrs. Mos. Final maturity date 1 , 1963 5 2 , 1959 0 2 , 1960 3 1 , 1960 5 1 , 1962 5 1 , 1963 5 1 , 1962 5 May May May May Aug. Feb. Aug. 1 , 1964 5 1 , 1964 5 1 , 1964 5 1 , 1966 5 1 , 1966 5 1 , 1967 5 1 , 1967 5 8 8 8 8 1 1 5 1 1 — — — 2 2 3 3 Amount outstanding (in billions) $. 57 49 . 39 . 36 . 45 . 43 . 53 . 2 New s c r t e t be i s e ( r a d t o a amount o an outstanding i s e . euiis o sud o diinl f su) Description of securities Amount outstanding (in billions) Issue date 3%% bond o Nov. 1 , 1968 f 5 4% bond o Aug. 1 , 1973 f 5 4y%°/o bond o May 1 , 19942 f 5 S p . 1 , 1963 et 5 S p . 1 , 1963 et 5 April 1 , 1963 8 $. 03 Interest starts1 Interest payable S p . 1 , 1963 et 5 S p . 1 , 1963 et 5 S p . 1 , 1963 et 5 May 1 and Nov. 153 5 Feb. 15 and Aug. 1 5 May 1 and Nov. 1 5 5 1 Interest on the securities surrendered stops on September IS, 1963. 2 Callable on and after M ay IS, 1989. 3 F irs t in terest p a ym en t w ill be M ay 15, 1964. 3 Terms o t e exchange: . f h Exchanges w l be made on t e b s s o equal f c amounts, with payments by t e Treasury, and il h ai f ae h with adjustments o accrued i t r s t September 1 , 1 6 , on t e s c r t e surrendered and on f neet o 5 93 h euiis t e a d t o a i s e o bonds ( e $100 f c amount), a i d c t d below: h d i i n l su f pr ae s niae Amounts to be paid to or by subscribers On account o f accrued interest to 9/15/63 Securities to be exchanged Payable TO subscriber on account o f purchase price of securities to be issued Payable BY subscriber on securities to be issued Payable TO subscriber on securities to be exchanged N et amount To be paid TO subscriber To be collected FROM subscriber Extension o f maturity Yrs.-Mos. F or t h e 3 % % B o n d s of 1968 3Y4 % 4% % 3% % cf B-1964 t. n t A-1964 oe note D-1964 $.5 06 16 .0 09 .5 — — — $1.086277 1 587636 . 1.25 3 7 39 F or th e 3%% c f B-1964 t. 4% % n t A-1964 oe 3 % % note D-1964 3 % % bond 1966 4% note A-1966 3%% note B-1967 3%% n A-1967 ote $.5 11 21 .0 14 .5 11 .5 18 .0 04 .0 07 .0 c f B-1964 t. 4 % % note A-1964 334% note D-1964 3 % % bond 1966 4% note A-1966 3 % % n B-1967 ote 3 % % note A-1967 $.5 13 23 .0 16 .5 13 .5 20 .0 06 .0 09 .0 B onds o f — — — — — — — $1.086277 1 .587636 1 3397 .25 1 253397 . 0.336 957 0 .305367 0.315897 F 314% 4°/o or t h e $1.086277 1. 7636 58 1.253 397 1.253397 0.336957 0.305367 0.315897 $1.736277 3.187 636 2 203397 . 1973 $ 2.236277 3 687636 . 2.703 397 2 403397 . 2.136 957 0.705367 1 59 .01 8 7 989-94 4y 8 % B o n d s o f 1 $1.686402 $0.749875 1 686402 . 2.201234 1 .686402 1.21 9 5 69 1.6864 02 0.916995 1 686402 . 0.650555 — 1.686 402 — 1.686402 2 — — — 4— 6 4— 6 4— 6 — — — — — — — 9— 9— 9— 7— 7— 6— 6— 3 3 3 3 0 6 0 __ — — — — 30— 30 — 30— 28 — 27 — 27 — 26 — 0 0 0 0 9 3 9 $0.781035 0.470505 The fol o i g coupons should be lwn surrendered: attached Securities t t e s c r t e i bearer form when they a e o h euiis n r 314% cf B-1964, 43/4% n t A-1964, t. oe 3%% n t D-1964, and 3%% bond 1966 oe 4% n t A-1966, 3%% n t B-1967, and 3%% n t A-1967 oe oe oe Coupons to be attached Nov. 1 , 1 6 , and subsequent 5 93 Feb. 1 , 1 6 , and subsequent 5 94 4 Payment: . Payment f r t e new s c r t e must be completed by September 1 , 1 6 . The new s c r t e o h euiis 8 93 euiis w l b d l v r d September 1 , 1 6 . Where t e t b e i t e preceding paragraph shows a n t il e e i e e 8 93 h al n h e amount t be c l e t d from s b c i e s such amount should accompany t e s b c i t o . Where o olce usrbr h usrpin t e t b e shows a ne amount payable t s b c i e s t e payment w l be made by t e Treasury, h al t o usrbr h il h ib f earer s c r t e a e surrendered f l o i g t e r a c p a c , and i r g s e e s c r t e a e sur euiis r o l w n hi c e t n e f e i t r d euiis r rendered f l o i g d s h r e o r g s r t o i accordance with t e assignments on t e s c r t e . o l w n i c a g f eitain n h h euiis 5 Limitation on amount o s c r t e t b i s e : . f euiis o e s u d The amount o s c r t e t b i s e under t i o f r n w l be l m t d t t e amount o t e f euiis o e s u d hs f e i g i l iie o h f h e i i l s c r t e tendered i exchange and a c p e . lgbe e u i i s n cetd 6 Books open f r s b c i t o s f r t e new s c r t e : . o usrpin o h euiis The books w l be open f r t e r c i t o s b c i t o s from Monday, September 9 through il o h eep f usrpin , Friday, September 1 . S b c i t o s pl c d i t e mail by midnight, September 1 , addressed t 3 usrpin ae n h 3 o any Federal Reserve Bank o Branch o t e T e s r r U. S, Washington, D. C 2 2 0 w l b r r h raue, . . 0 2 , il e considered a t m l . The us o r g s e e mail i recommended f r t e s c r t holders’ pro s iey e f eitrd s o h euiy t c i n i submitting s c r t e t b exchanged. eto n euiis o e I s c r t e e i i l f r exchange a e pledged with a S a e o Federal Government agency o f e u i i s lgbe o r tt r r a t ority and such s c r t e cannot o w l no b r l a e by such a t o i y t t e pledgor i uh euiis r il t e e e s d uhrt o h n time f r us i making payment f r t e s c r t e o f r d i t i exchange, t e pledgor may, never o e n o h euiis f e e n hs h t e e s e t r a s b c i t o . Such s b c i t o s should be accompanied by a l t e signed by an hls, n e usrpin usrpin etr authorized ofca o t e pledgor e plaining t e circumstances and, i t e a t o i y w l not r l a e fiil f h x h f h u h r t il ees t e s c r t e , a r q e t and a t o i a i n f r t e Federal Reserve Bank, o Branch, or t e Treas h euiis eus uhrzto o h r h urer o t e U. S (according t where t e s b c i t o i d r c e ) t d l v r t e new s c r t e t f h . o h u s r p i n s ietd o eie h euiis o t e S a e o Federal au h r t i exchange f r t e o d s c r t e held by such a t o i y h tt r toiy n o h l euiis uhrt. 7 Requirements a p i a l t s b c i t o s . plcbe o usrpin: S b c i t o s w l be r c i e a t e Federal Reserve Banks and Branches and a t e O f c o t e u s r p i n il eevd t h t h fie f h Treasurer o t e United S a e , Washington, D. C 2 2 0 Banking i s i u i n g n r l y may f h tts . 02. ntttos e e a l submit s b c i t o s f r account o c s o e s Al s b c i e s re u s i g r g s e e s c r t e usrpin o f utmr. l usrbr q e t n e i t r d euiis w l be r il equired t f r i h appropriate i e t f i g numbers a required on t x r t r s and o h r o uns dniyn s a eun te documents submitted t t e I t r a Revenue S r i e o h nenl evc. 8 Denominations and o h r c a a t r s i s o new s c r t e : . t e hrceitc f euiis The bonds w l be i s e i denominations o $ 0 , $ , 0 , $ , 0 , $ 0 0 0 $100,000 and $ , 0 , 0 il sud n f 50 100 500 1,0, 10000 i coupon and r g s e e f r s The bonds w l b a c p a l t s c r d p s t o p b i moneys. n eitrd om. il e c e t b e o e u e eois f u l c 9 Nonrecognition o gain o l s f r Federal income ta purposes: . f r os o x ( ) General— The Secretary o t e Treasury has decl r d pursuant t s c i n 1037(a) o t e a f h ae o eto f h I t r a Revenue Code t a no gain o l s s a l be recognized f r Federal income tax purposes nenl ht r os h l o s l l on account o t e exchange o t e s c r t e ; however, s c i n 1031(b) o t e Code r q i e oey f h f h euiis eto f h eurs r c g i i n o any gain r a i e on t e exchange t t e e t n t a money ( t e than i t r s ) eonto f elzd h o h xet ht ohr neet i r c i e by t e s c r t h s eevd h e u i y older i connection with t e exchange a i d c t d i ( ) n h s n i a e n b. ( ) Where the securities to be issued are offered by the Treasury with a payment to the investor— b I t e f i market value1 o t e s c r t e t be i s e p u t e amount paid t t e i v s o f h ar f h euiis o sud ls h o h netr 1 The mean of the bid and asked quotations on date subscriptions are submitted. 3 ( i c u t e c e s t e c s b s s t t e i v s o o t e s c r t e t be exchanged, such gain (b t d s o n ) x e d h ot ai o h n e t r f h euiis o u not t exceed t e amount o t e payment) must be r cognized and accounted f r a gain f r t e o h f h e o s o h t x b e year o exchange. He w l carry t e new s c r t e on h s books a t e same amount a he aal f il h euiis i t h s i now carrying t e o d s c r t e e s h l e u i i s xcept t a he w l reduce t e c s b s s by t e amount o t e ht il h ot ai h f h payment and i c e s i by t e amount o t e gain r c g i e . I t e f i market value o t e nrae t h f h eonzd f h ar f h new s c r t e p u t e amount o t e payment d e not exceed t e c s b s s o t e o d s c r t e , euiis l s h f h os h o t a i f h l euiis t e b s s i t e new s c r t e w l b t e c s b s s i t e o d s c r t e reduced by t e amount o h ai n h euiis il e h o t a i n h l euiis h f t e payment. h ( ) Gain t t e e t n no recog i e under ( ) ( r l s ) i a y upon t e o d s c r t e sur c o h xet t nzd b o os, f n , h l euiis rendered i exchange w l be taken i t account upon t e d s o i i n o redemption o t e new n il no h ipsto r f h s c r t e . ( appendix t paragraph 9 on page 6) e u i i s See o . 1 0 Federal estate tax option on the 4Ys% bonds of 1989-94— The 4 % % bonds o 1989-94 w l b redeem f il e a l a par and accrued i t r s p i r t maturity f r t e purpose o using t e proceeds i payment be t neet r o o o h f h n o Federal e t t t x s but only if they are owned by the decedent at the time of his death and there f sae a e upon constitute part of his estate. 1 . Book value o new s c r t e t banking i s i u i n : 1 f euiis o ntttos The Comptroller o t e Currency, Board o Governors o t e Federal Reserve System, and t e f h f f h h Federal Deposit Insurance Corporation have i d c t d t t e Treasury t a banks under t e r niae o h ht hi s p r i i n may p a e t e new s c r t e r c i e i exchange on t e r books a an amount not uevso lc h euiis e e v d n hi t g e t r than t e amount a which t e e i i l s c r t e surrendered by them a e c r i d on t e r rae h t h lgbe e u i i s r are hi books p u t e amount o premium, i a y paid on t e new s c r t e , o reduced by t e amount ls h f f n, h euiis r h o d s o n , i a y r c i e by t e s b c i e and i c e s d by t e amount o g i , i a which f icut f n , eevd h usrbr nrae h f a n f ny, w l be r cognized a i d c t d i paragraph 9 il e s niae n . 1 . Computation o reinvestment r t f r t e e t n i n o maturity: 2 f ae o h x e s o f A ho d r o t e outstanding e i i l s c r t e has t e op i n o a le f h lgbe e u i i s h t o f ccepting t e Treasury’ exchange h s o f r o o holding them t m t r t . Consequently, he can compare t e i t r s p ( r minus) fe r f o auiy h n e e t lus o any payment, o h r than t e adjustment o accrued i t r s , he w l r c i e r s l i g from te h f neet il e e v e u t n exchanging now with t e t t l o t e i t r s on t e e i i l i s e and what he might o t i by h oa f h n e e t h lgbe s u s ban r i v s i g t e proceeds o t e e i i l s c r t e a m t r t . enetn h f h lgbe e u i i s t a u i y The income b f r ta f r making t e e t n i n now through exchange w l be t e coupon r t s eoe x o h xeso il h ae p u ( r minus) any payment on t e new i s e . I a h ls o h s u s f older o t e e i i l s c r t e d e not make f h lgbe e u i i s o s t e exchange he would r c i e t e coupon r t s on t e e i i l i s e t t e rmaturity and would h eev h ae h lgbe s u s o h i have t r i v s a t a time a a r t equal t t a i d c t d i paragraph 13 below f r t e remain o enet t ht t ae o ht niae n o h i g terms o t e i s e now o f r d i order t equal t e return ( n l d n any payment) he n f h sus fee, n o h icuig would r c i e by accepting t e exchange of r For example, i t e 3%% bonds o 5/15/66 a e eev h fe. f h f r exchanged f r t e 4% bonds o 8 15/73, t e i v s o r c i e 4% f r t e e t r nine year and o h f / h netr eevs o h nie s e e e months p u $ . 5 ( e $100 f c v lvn ls 11 pr a e alue) immediately. I t e exchange i not made, a 3%% f h s r t w l b r c i e u t l May 1 , 1 6 , requiring reinvestment o t e proceeds o t e 3 % ’ o a e il e e e v d n i 5 96 f h f h s f 1966 a t a time a a r t o a l a t 4.32% f r t e remaining seven yea s and t r e months, a l t ht t a e f t es o h r he l a compound i t r s , t average out t a 4% r t f r nine years and e e e months p t e $ . 5 t neet o o ae o lvn lus h 1 1 immediate payment. This minimum reinvestment r t f r t e e t n i n period i shown i t e ae o h xe s o s n h t b e under paragraph 1 . The minimum reinvestment r t s f r t e o h r i s e included i t e al 3 ae o h t e sus n h exchange a e a s shown i t e t b e under paragraph 1 . r lo n h al 3 4 13. Payments on issue price and investment rates on the new bonds offered in exchange to holders of the eligible securities: C/Is 5/15/64 3% % Notes 5/15/64 F o r th e N ew 3 % % Payments on accounto $100 i s e f su p i e t subscriber....... rc o Approximate investment y e d il from exchange d t (9/15/63) ae t maturity o bonds o f r d i o f fee n exchange based on p i e o rc f s c r t e e i i l f r exchange1 e u i i s lgbe o Approximate minimum r i v s enet ment r t f r t e e t n i n ae o h xeso period2 .............. 4% % Notes 5/15/64 3% % Bonds 5/15/66 B on ds o f N ovem ber 4% Notes 8/15/66 3% % Notes 2/15/67 3% % Notes 8/15/67 15, 1968 $0.65 $0.95 $1.60 — — — 4.02% 4.02% 4.02% — — — 4.14% 4.13% 4.13% — — — F or t h e N e w 4 % B o n d s of A u g u s t 15, 1973 Payments on account o $100 i s e f su p i e t subscriber....... rc o Approximate investment y e d il from exchange d t (9/15/63) ae t maturity o bonds o f r d i o f fee n exchange based on p i e o rc f s c r t e e i i l f r exchange1 e u i i s lgbe o Approximate minimum r i v s enet ment r t f r t e e t n i n ae o h xeso period2 .............. F $1.15 $1.45 $2.10 $1.15 $1.80 $0.40 $0.70 4.15% 4.14% 4.14% 4.15% 4.15% 4.15% 4.14% 4.22% 4.22% 4.22% 4.32% 4.34% 4.32% 4.36% or t h e Payments on account o $100 i s e f su p i e t s b c i e ........ rc o usrbr Approximate investment y e d il from exchange d t (9/15/63) ae t maturity o bonds o f r d i o f fee n exchange based on p i e o rc f s c r t e e i i l f r exchange1 e u i i s lgbe o Approximate minimum r i v s enet ment r t f r t e e t n i n ae o h xeso period2 .............. N ew 4%% B onds of M ay 1 , 1989-94 5 $1.35 $1.65 $2.30 $1.35 $2.00 $0.60 $0.90 4.21% 4.20% 4.20% 4.21% 4.21% 4.21% 4.20% 4.24% 4.24% 4.24% 4.28% 4.29% 4.28% 4.29% 1 Yield to nontaxable holder or before tax. Based on mean o f bid and asked prices (adjusted for payments on account of issue price) at noon on September 3, 1963. 2 Rate for nontaxable holder or before tax. For explanation see paragraph 12 above. 5 A P P E N D IX N onrecognition o f Gain or TO PARAGRAPH NO. 9 L oss for F ederal I ncome T ax P urposes Where a bond i o f r d by t e Treasury with a payment ( t e than t e accrued i t r s adjust s fee h ohr h neet ment) t t e i v s o . o h netr Examples: 1 Assume t a : . ht ( ) The f i market v lue o t e s c r t o f r d by t e Treasury on t e d t t e s b c i t o i a ar a f h euiy fee h h ae h usrpin s submitted i $ . 0 ( e $100 f c v l e . s 99 5 p r ae au) ( ) The payment t t e s b c i e ( i c u t on account o $100 i s e p i e i $ 8 . b o h usrbr dson) f s u r c s .0 ( ) The amortized c s b s s o t e s c r t surrendered on t e books o t e s b c i e i $100.50 c ot ai f h e u i y h f h usrbr s ( e $100 f c v l e . ( t i assumed t a t e s c r t surrendered was bought a a p i e above pr ae au) I s ht h euiy t rc $100.50 and t a t e o i i a premium was reduced pro r t o t e p h t h rgnl a a ver h eriod from purchase d t ae t mtrt. o auiy) The sum o t e f i market value o t e s c r t o f r d by t e Treasury and t e payment t f h ar f h euiy fee h h o t e s b c i e i $ 9 5 plus $ 8 o $ 0 . 0 This i l s than t e c s b s s o t e i s e sur h usrbr s 9.0 .0 r 103. s es h ot ai f h su rendered;t e e o e no gain i r c g i e . The new i s e w l be entered on t e books o t e sub hrfr, s eonzd su il h f h s r b r a a c s b s s o $ 9 7 , t e c s b s s o t e i s e surrendered l s $ 8 . The gain o cie t ot ai f 9.0 h ot a i f h su es .0 r l s between t i c s b s s and t e proceeds o a subsequent s l o redemption o t e new i s e os hs ot a i h f ae r f h su w l be a c p t l gain o l s t ali v s o s except t o e t whom t e s c r t e a e s o k i t a e il aia r os o l n e t r , hs o h euiis r t c n rd. Under present l w i t e combined time t a t e s c r t surrendered and t e new s c r t a, f h ht h euiy h euiy r c i e i exchange were h l exce d 6 months, t e c p t l gain o l s i l n - e m o h r i e eevd n ed es h aia r os s o g t r , t e w s i i sottr. t s hr-em 2 The assumptions a e t e same a i example 1 except t a t e payment ( i c u t t t e sub . r h s n ht h dson) o h s r b r i now $ . 0 ( e $100 f c v l e i s e d o $ 8 i example 1 cie s 12 pr ae au) nta f .0 n . The sum o t e f i market valu o t e new s c r t r c i e i exchange by t e s b c i e p u f h ar e f h euiy eevd n h usrbr ls t e $ . 0 payment ( i c u t i $ 0 . 0 This e c h 12 dson) s 107. x eeds t e c s b s s o t e s c r t surren h ot ai f h e uiy dered by $ 2 . This e c s i a recog i e gain r p r a l f r t e year i which t e exchange .0 xes s nzd eotbe o h n h t k s p a e The gain i a c p t l gain except t t o e t whom t e s c r t e a e s o k i t a e a e lc. s aia o hs o h euiis r t c n rd. Under p e r sent l w i t e time t e s c r t surrendered was h exceeds 6 months, t e c p t l a, f h h euiy eld h aia gain i l n - e m ot s o g t r , herwise i i s o t t r t s hr-em The s b c i e w l carry t e new i s e r c i e i exchange a a c s b s s equal t t e b s s o u s r b r il h su e e v d n t ot ai o h ai f t e i s e surrendered ( 1 0 5 ) l s t e payment ( 1 2 ) p t e amount o t e recogn h su $ 0 . 0 , es h $ . 0 , lus h f h ized gain ( . 0 , or ( 1 0 5 $2) $ 0 . 0-$1.20 p u $ 2 ) $ 9 5 . l s .0 9.0 3 The assumptions a e t e same a i example 1 except t a t e c s b s s on t e books o t e sub . r h s n , h t h ot ai h f h s r b r o t e s c r t surrendered i $9 . 0 ( e $100 f c v l e i s e d o $100.50 i example 1 cie, f h e u i y s 90 pr ae au) nta f n . The sum o t e f i market val e o t e new i s e r c i e i exchange by t e s b c i e p t e f h ar u f h su e e v d n h u s r b r lus h $ 8 payment ( i c u t i $100.3 ( s i example 1 . This e c .0 dson) s 0 a n ) x eeds t e $9 . 0 c s b s s by more h 9 0 ot ai than $ 8 . However, t e amount o t e g r p r a l f r t e year o t e exchange i $ 8 , s n et e .0 h f h ain e o t b e o h f h s .0 i c h amount o gain reco f gnized cannot exceed t e amount o t e payment. The nature o t e recog h f h f h niz d gain and is treatment i t e same a i example 2 e t s h s n . In t i c s , t e s b c i e w l e t r t e new s c r t r c i e i exchange on h s books a $ 9 0 , hs ae h u s r b r il n e h euiy eevd n i t 9.0 t e same c s b s s a t e s c r t s r e dered. h ot ai s h e u i y u r n
@FedFRASER