On dec 31 2010 a company has a 20000 6 annual coupon bond


On Dec 31. 2010, a company. Has a $200,00 6% annual coupon bond outstanding that matures in three years. The bonds were issued when the prevailing rate of interest was 7%. On Dec 31, 2010, the company negotiates a restructure agreement with the bond holder. The face value (amount payable at maturity) of the bonds is reduced to $170,000 and the annual interest payments are reduced to $9,000 each. How much gain on restructure will the company recognize on Dec 31, 2010?

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Financial Accounting: On dec 31 2010 a company has a 20000 6 annual coupon bond
Reference No:- TGS02156349

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