What the loss on retirement, ignoring taxes, is


The 12% bonds payable of Lynn Co. had a carrying amount of $936,000 on December 31, 2004. The bonds, which had a face value of $900,000, were issued at a premium to yield 10%. Lynn uses the effective interest method of amortization. Interest is paid on June 30 and December 31. On July 1, 2005, several years before their maturity and after Lynn made the interest payment for June 30, 2005, Lynn retired the bonds at 104. what the loss on retirement, ignoring taxes, is ?

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Accounting Basics: What the loss on retirement, ignoring taxes, is
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