Mom Ltd is a public corporation and issues $900000 of 6% bonds on 1 January 2011, incorporating the following relevant data.

Mom Ltd. has a December 31 fiscal year end.

Bond date 1 January 2010

Maturity date 31 december 2014

Interest dates 30 June; 31 december

Yield rate 4%

On 1 march 2013 Mom Ltd purchased 30% of the bonds in the open market for 98 plus accrued interest.

Required

A. Prepare journal entries in order to update the portion of bond issue retired, and to record the bond retirement.

B. Indicate at which date the bond payable must be recognized as a liability of Mom Ltd.

C.Prepare journal entries to record bond issue.

D. assume mom ltd. is to repay the full bond at maturity, but nevertheless wished to extinguish the entire bond liability through a defeasance transaction. discuss in detail the requirements of such a disclosure.