Question
On its December 31, 2020 balance sheet, Vaughn Manufacturing reported bonds payable of $5990000. The bonds had been issued at par. On January 2, 2021,
On its December 31, 2020 balance sheet, Vaughn Manufacturing reported bonds payable of $5990000. The bonds had been issued at par. On January 2, 2021, Vaughn retired $2995000 of the outstanding bonds at par plus a call premium of $74000. What amount should Vaughn report in its 2021 income statement as loss on extinguishment of debt (ignore taxes)?
$32000
$37000
$74000
$0
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Intermediate Accounting
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
10th Edition
324300980, 978-0324300987
