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A company wants to extinguish a $500,000 face value bond with a carrying value of $556,000. The call price on this bond is $600,000.
A company wants to extinguish a $500,000 face value bond with a carrying value of $556,000. The call price on this bond is $600,000. The stated rate was 10% and market rate was 8%. The journal entry to record the extinguishment on the bond will include... O A. Dr. Premium on Bond Payable 56,000 OB. Cr. Premium on Bond Payable 44,000 OC. Dr. Loss on extinguishment 56,000 OD.Cr. Bonds Payable 600,000
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The correct answer is C When the debt is extinguished ASC 40520 indicates the amount that is ...
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Principles of Accounting
Authors: Belverd Needles, Marian Powers, Susan Crosson
10th edition
618736611, 978-1111809508, 111180950X, 978-0618736614
