K On January 1, 2024, Patterson Company issued $500,000 of 4%, five-year bonds payable at 104 Patterson Company has extra cash and wishes to retire the bonds payable on January 1, 2025, immediately after making the second semiannual interest payment. To retire the bonds, Patterson pays the market price of 95. Vie Read the requirements (Assume bonds payable are amortized using the straight-line amortization method) Requirement 1. What is Patterson Company's carrying amount of the bonds payable on the retirement date? The carrying amount of the bonds payable on the retirement date is Requirement 2. How much cash must Patterson Company pay to retire the bonds payable? To retire the bonds, Patterson Company must pay Requirement 3. Compute Patterson Company's gain or loss on the retirement of the bonds payable. (Use parentheses or a minus sign for losses) Patterson Company's gain or loss on the retirement of the bonds payable is Requirements 1. What is Patterson Company's carrying amount of the bonds payable on the retirement date? X 2. How much cash must Patterson Company pay to retire the bonds payable? 3. Compute Patterson Company's gain or loss on the retirement of the bonds payable. Next