Grider Industries, Inc i su dS15.000,000 of 8% debentures on May 1, 2017 and receive dash these and premiums. The bonds were sold to yield an Instructions Calculate the total dollar amount of discount or premium amortization during 14. Amortization of discount or premium. 92.The bonds pay interest semiannually on May I and November 1. The maturity date on bonds is November 1, 2025. The firm uses the effective-interest method of amortizing discounts rate of 10%. the first year (5/1/17 (Show computations and round to the nearest dollar.) through 4/30/18) these bonds were outstanding. 15. Entries for Bonds Payable Prepare journal entries to record the following transactions related to long-term bonds of Quirk Co (a) On April 1 , 2016, Quirk issued $2.000,000, 9% bonds for $2.151,472 including accrued interest Interest is payable annually on January 1, and the bonds mature on January 1, 2026 (b) On July 1, 2018 Quirk retired $600,000 of the bonds at 102 plus accrued interest. Quirk uses straight-line amortization 16. Early extinguishment of debt. Hurst, Incorporated sold its 8% bonds with a maturity value of$9,000,000 on August l, 2016 for $8,838,000. At the time of the sale the bonds had 5 years until they reached maturity. Interest on the bonds is payable semiannually on August 1 and February 1. The bonds are callable at 104 at any time after August 1,2018. By October 1, 2018, the market rate of interest has declined and the market price of Hurst's bonds has risen to a price of 101.The firm decides to refund the bonds by selling a new 6% bond issue to mature in 5 years. Hurst begins to reacquire its 8% bonds in the market and is able to purchase $1,500,000 worth at 101. The remainder of the outstanding bonds is reacquired by exercising the bonds call feature. In the final analysis, how much was the gain or loss experienced by Hurst in reacquiring its 8% bonds? (Assume the firn used straight-line amortization.) Show calculations. 17. IFRS requires bond issue costs: A) B) C) D) to be recorded as an asset. to be excluded while computing the interest expense. to be netted against the carrying amount of the bonds. to be considered when computing income tax payable. Page 6