2 Q

Bonds Payable has a balance of $960,000 and Discount on Bonds Payable has a balance of $9,600. If the issuing corporation redeems the bonds at 97.5, what is the amount of gain or loss on redemption? a. $14,400 gain b. $9,600 gain c. $9,600 losi d. $14,400loss On January 1, a $953,000,10%,5-year bond was issued for $924,410. Interest is paid semiannually on January 1 and July 1 . If the issuing corporation uses the straight-line method to amortize the discount on bonds payable, the semiannual amortization amount is a. $5,718 b. $28,590 c. $2,859 d. $47,650