by the debtor. d. interest expense or revenue should be recognized in the future years, 7. The 12% bonds payable of Thomas Co. had a carrying amount of $8,320,000 on December 31, 2021. The bonds, which had a face value of $8,000,000, were issued at a premium to yield 10%. Thomas uses the effective-interest method of amortization. Interest is paid on June 30 and December 31. On June 30, 2022, several years before their maturity, Thomas extinguished all the bonds at 100 (i.e., 100% of face value). The gain or loss on bond extinguishment, ignoring taxes, is a. $0. b. $320,000 loss. c. $256,000 gain. d. $256,000 loss. e. None of above. 8. The general rule to be applied when stock is issued for services or property other than cash is that the property or services be recorded at: a the fair market value of the stock issued. In a troubled debt restructuring in which the debt is continued with modified terms and the arrying amount of the debt is greater than the total undiscounted future cash flows, a. a loss should be recognized by the debtor. b. a gain should be recognized by the debtor. C. no gain should be recognized by the debtor. d. interest expense or revenue should be recognized in the future years