Statement as the loss on extinguishment of debt, Accounting Basics

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Statement as the loss on extinguishment of debt

On its December 31, 2006 balance sheet, Lane Corp. reported bonds payable of $6,000,000 and related unamortized bond issue costs of $320,000. The bonds had been issued at par. On January 2, 2007, Lane retired $3,000,000 of the outstanding bonds at par plus a call premium of $70,000. What amount should Lane report in its 2007 income statement as loss on extinguishment of debt (ignore taxes)?

a. $0

b. $70,000

c. $160,000

d. $230,000

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Accounting Basics: Statement as the loss on extinguishment of debt

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Accounting Basics: Statement as the loss on extinguishment of debt

Reference No:- TGS095152

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Recent Questions Asked Accounting Basics

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Accounting Basics: Statement as the loss on extinguishment of debt

Reference No:- TGS095152

Recent Questions Asked Accounting Basics

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