Computing gain or loss record on bond retirement


Q1) On June 30, 2007, country inc had outstanding 10% ,$1,000,000 face amount, 15 year bonds maturing on June 30, 2012. Interest is paid on June 30 and December 31 and bond discount and bond issue costs are amortized on these dates. Unamortized balances on June 30,2007 of bond discount and bond issue costs were $55,000 and $20,000 respectively. Country reacquired all of these bonds at 96 on June 30, 2007, and retired them. Ignoring income taxes, compute gain/loss must country record on bond retirement?

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Accounting Basics: Computing gain or loss record on bond retirement
Reference No:- TGS021591

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