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Bonds with the following characteristics are ret...

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Question

Bonds with the following characteristics are retired on January 1, 2005, at 104:Issue date: January 1, 2004; maturity date: January 1, 2009; face value: $300,000; bond issue costs: $5,000, amortized semiannually using the straight-line method of amortization. The unamortized bond discount is $8,500 as of January 1, 2005. What is the amount of the gain or loss on the bond retirement? Answer Gain of $8,500 Loss of $12,500 Gain of $12,500 Loss of $24,500

 

Paper#9710 | Written in 18-Jul-2015

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