Question
On February 1, 2015, Pat Weaver Inc. (PWI) issued 9%, $2,000,000 bonds for $2,300,000. PWI retired all of these bonds on January 1, 2016, at
On February 1, 2015, Pat Weaver Inc. (PWI) issued 9%, $2,000,000 bonds for $2,300,000. PWI retired all of these bonds on January 1, 2016, at 104. Unamortized bond premium on that date was $208,000. How much gain or loss should be recognized on this bond retirement?
$128,000 gain.
$180,000 gain.
$207,000 gain.
$0 gain.
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Auditing and Assurance Services
Authors: Timothy Louwers, Allen Blay, David Sinason, Jerry Strawser, Jay Thibodeau
7th edition
978-1259573286, 1259573281, 978-1260152166
