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3. ABC Corporation issued $95,000 face value bonds at a discount of $5,000. The bonds contain a call price of 102. ABC decides to redeem

image text in transcribed 3. ABC Corporation issued $95,000 face value bonds at a discount of $5,000. The bonds contain a call price of 102. ABC decides to redeem the bonds early when the unamortized discount is $2,750. A. Calculate the gain or loss on the early redemption of the bonds. B. What financial statement would the gain or loss would be reported? 4. ABC Company issued $150,000 face value bonds at a premium of $6,000. The bonds contain a call provision of 102. ABC decides to redeem the bonds due to a significant decline in interest rates. On that date, ABC amortized only $1,500 of the premium. A. Calculate the gain or loss on early redemption of the bonds. B. Determine the impact on the accounting equation of the journal entry recorded at the time of bond redemption. Balance Sheet Income Statement Stockholders' Net Assets Liabilities + Equity Revenues Expenses = Income

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