c

On January 1, 2009, Lockman Inc. issued a $100,000 bond with a 12% coupon rate, a 20-year life, and semiannual interest payments on June 30 and December 31 each year. The bond was issued for $100,000. On January 1, 2019 (with 10 years left in the bond's life), the annual market (yield) rate investors expect to earn is 10% and Lockman repurchase (redeemed, retired) the bonds. Following are some present value factors: Period Rate PV of Single Amount PV of Ordinary Annuity 10 10% .386 6.145 10 12% .322 5.650 20 5% .377 12.462 20 6% .312 11.470 Identify the following statements that are TRUE? The repurchase of the bond on January 1, 2019 resulted in a Gain on Bond Repurchase. The book value of the bond payable on January 1, 2019 was greater than $100,000. The market (yield) rate at issuance of the bond was 12%. The book value of the bond payable on January 1, 2019 was less than $100,000. The market value of the bond payable on January 1, 2019 was $100,000. The cash paid to repurchase the bond on January 1, 2019 was $112,472