[Solved] GerbilCompanyissues$5,000,000facevalueofb

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GerbilCompanyissues$5,000,000facevalueofbondsat96onJanuary1,2009.Thebondsare datedJanuary1,2009,payinterestsemiannuallyat8%onJune30andDecember31,andmature in10years.Straight-lineamortizationisusedfordiscountsandpremiums.OnSeptember1, 2012,$3,000,000ofthebondsarecalledat102plusaccruedinterest.Whatgainorlosswouldbe recognizedonthecalledbondsonSeptember1,2012?

GerbilCompanyissues$5,000,000facevalueofbondsat96onJanuary1,2009.Thebondsare

datedJanuary1,2009,payinterestsemiannuallyat8%onJune30andDecember31,andmature

in10years.Straight-lineamortizationisusedfordiscountsandpremiums.OnSeptember1,

2012,$3,000,000ofthebondsarecalledat102plusaccruedinterest.Whatgainorlosswouldbe

recognizedonthecalledbondsonSeptember1,2012?

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