15. Entries for Bonds Payable. Prepare journal entries to record the following transactions related to long-term bonds of Quirk Co. (a) On April 1 , 2016, Quirk issued $2,000,000, 9% bonds for $2,151,472 including accrued interest. Interest is payable annually on January 1, and the bonds mature on January 1, 2026. (b) On July 1, 2018 Quirk retired $600,000 of the bonds at 102 plus accrued interest. Quirk uses straight-line amortization. 16. Early extinguishment of debt. Hurst Inco ported sold its 8% bonds with a maturity value of $9,000,000 on August 1, 2016 for $8,838,000. At the time of the sale the bonds had 5 years until they reached maturity. Interest on the bonds is payable semiannually on August 1 and February 1. The bonds are callable at 104 at an af ter August 1, 2018. By October 1,2018, the market rate of interest has declined and the market price of issue to matu re in 5 years. Hurst begins to reacquire its 8% bonds in the market and is able to purchase $1,500,000 worth at 101. The remainder of the outstanding bonds is reacquired by exercising the bonds' call feature. In the final analysis, how much was the gain or loss experienced by Hurst in reacquiring its 8% bonds? (Assume the firm used straight-line amortization.) Show calculations. 17. IFRS requires bond issue costs A) to be recorded as an asset. B) to be excluded while computing the interest expense. C) to be netted against the carrying amount of the bonds. D) to be considered when computing income tax payable